Nan Chen is a farmer who owns a farm with an area 150 Acres. This year she has farmed it with the following vegetable crops:

The fixed overhead costs are at 70,000 per year. Required: 1. Calculate the anticipated profit for the current year. (Note: For each crop, you should first calculate the contribution per acre and then calculate the total contribution for each crop) 2. Specify which of the above vegetable crops would be most profitable to produce next year (It may be assumed that any part of the farm can be used to grow any crop). 3. Calculate the break-even point in s of sales of the crop that you have identified in part (2) above. 4. Calculate the maximum profit for the next year subject to Nan Chens desire to produce at least 80 tonnes of each crop.

Bok Choy Eggplant Carrots Cabbage Acres Yield per acre (tonnes) 20 8 60 8 40 10 30 10 110 130 120 120 20 Selling price per tonne Variable costs per acre: Fertiliser Seeds Pesticides Direct wages 25 20 15 400 20 20 10 380 30 30 20 500 25 25 500