Homework 1: Budgeting and Marginal Analysis Partial Budgeting: Backgrounding Steers You own 50 steers that weigh 500 pounds. You can either sell them now or you can keep them 90 days. If you keep the steers, you expect it will cost you $0.75/pound of gain in feed expenses over the next three months and you expected them to gain 225 pounds (or 2.5 like per day). It will cost you $4/head in vet and medicine expenses, and you expect one of the steers to die. You will also pay a $5/head transportation fee. If you sold them today, you would get $1.53/pound. 1. Calculate the revenue from selling the steers today. Show your work. 2. What is your breakeven price per ll you need for the 90-day grazing period? Show your work. 3. In a drought scenario, you can only put on 1.75 lb/day and only graze for 75 days, what is the breakeven price for steer calves in the drought scenario? Show your work. 4. Currently, the price of a 700-800 lb steer calve is $1.2/1b. If prices remain the same, would it be profitable to background your steer calves in a drought year and in an average yield