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please fill out the chart and answer the questions II. Rhonda Rancher is currently running 230 stocker steers, which are purchased in the spring, run
please fill out the chart and answer the questions
II. Rhonda Rancher is currently running 230 stocker steers, which are purchased in the spring, run on pasture during the summer and sold in the fall. Rhonda is thinking about switching to a cow-calf operation with 100 beef cows replacing the 230 stocker steers. Use the following information to complete a partial budget so you can make a recommendation to Rhonda. INFORMATION ON STOCKER STEERS (230 head) Returns: 675lb. steer@ \$160.00/cwt. (Sell 226 head, assume 4 die) Cos BEEF COW-CALF INFORMATION (100 head) Investment in cows, bulls and replacement herd averages $900 per cow. The calf crop is 92% ( 92 calves are weaned) and 12 heifer calves are kept for replacements. Returns: 80 calves weighing 460lbs,$170.00 per cwt. 12 cull cows weighing 1,050lbs. @ $100.00 per cwt. 1. Would you recommend Rhonda make the switch to a cow-calf operation? WHY? No depreciation on fences, working pens, water facilities, etc. was included in this partial budget. Why? If all other values are held constant, what would the selling price of stockers must be to make this a breakeven decision (i.e., a $0 change in profit) Step by Step Solution
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