Question
HELPPP!!! Annie has 500 acres of irrigated land, which is suitable for growing corn, cotton, soybean, grain sorghum, or peanuts. She has two options for
HELPPP!!! Annie has 500 acres of irrigated land, which is suitable for growing corn, cotton, soybean, grain sorghum, or peanuts. She has two options for livestock; beef cattle, which requires 2 acres of land and stocker cattle, which requires 1.5 acres of land. The water requirement of corn is 24 inches per care, cotton is 16 inches per acre, soybean is 20 inches per acre, grain sorghum is 12 inches per acre, and peanuts is 15 inches per acre. Beef cattle and stocker cattle requires 2 inches of water per head. The total water available for her farm is 9,500 inches.
The yield of corn is 200 bushels/acre, the lint yield of cotton is 1400 lb. / acre (ignore revenue from seed, it is adjusted in the cost), the yield of soybean is 65 bu. / acre, the yield of grain sorghum is 60 CWT per acre, the yield of peanuts is 2.25 tons/acre. The price of corn is $4.25/bu. cotton lint $0.70/lb., soybean is $8.00/bu., grain sorghum is $7.00/CWT, peanut is $395/ton.
The total variable cost of production for corn is $675/acre, for cotton is $800/acre, for soybean is $350/acre, for grain sorghum is $350/acre, and for peanuts is $750/acre.
The total revenue for beef cattle is $968 / head, and for stocker cattle is $688 / head. The total cost for beef cattle is $518/head and for stocker cattle is $538/head.
She wants to have a minimum of 20 heads of beef cattle, and 50 acres of soybean. She also has a contract to supply 4,000 bushels of corn.
What combination of enterprises will maximize her returns over variable cost? Please solve the LP and upload the excel sheet with the setup and answer report.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started