Hereford Harry plans to purchase 400 pound steer calves and graze them for 150 days.He projects they will gain 200 pounds during the grazing period and the sales price will be $140 per cwt. Death loss is projected at 2 percent. His abbreviated enterprise budget is:

Weight Units Price Quantity $/Head

Stockers

Total Receipts 6.0 cwt 140.00 .98 Hd. $823.20

Operating Inputs:

Steer Calves 4.0 cwt 155.001.0 Hd. $620.00

Feed, Vet, & Supplies head 45.50 1 $65.50

Marketing head 9.50 1 $9.50

Machinery Variable Costs head 34.40 1 $34.40

Interest on Operating Capital $ .05 303.90 $15.20

Total Variable Costs $744.90

Return Above Operating Costs $78.30

Fixed Costs:

Machinery $15.50

Land $70.00

Total Fixed Costs $85.50

Return to Management ($/head) -$7.20

1. Recalculate total receipts if the actual gain during the grazing period is 220 pounds and he incurs a 4 percent death loss. The price remains the same at $140.00 per cwt. Show your work.

2. What is the resulting return to management?