Please help with this farm management partial budget
30 points total, A 9 points, B,C, D 2 points each Charlie and Joanne's production plan currently consists of 200 acres of wheat, 100 acres of grain sorghum, 200 acres in improved pasture, 65 acres in native pasture and 100 spring calving cows. They have decided they would like to consider using the winter pasture available from the wheat for overwintering their steer calves. They have been selling an average of 45 steers in October at a weight of 450 pounds and a price of $150 per cwt. If they graze the steers until March 15, they will average 635 pounds. Charlie expects an average selling price for the steers of $135 per cwt. in March. They project non-feed operating costs for keeping the steers to be $75 per head. They project additional feed requirements of the steers to be 50 pounds of protein supplement and 500 pounds of hay per head. The protein supplement sells for $25 per hundredweight and they will feed part of the grass hay they have been producing and selling for $75 per ton. A. Help Charlie and Joanne with their analysis by competing a partial budget of the proposed change. Proposed Change Added Income Reduced Costs Reduced Income A. Total additional costs B. Total additional revenue And reduced revenues and reduced costs Net Change in Profit (B-A) B. what advice would you give them? why? Compute the March steer selling price (S/cwt.) at which the proposed plan would break-even with the current plan. C. D. Compute the grass hay selling price ($/ton) at which the proposed plan would break-even with the current plan. 30 points total, A 9 points, B,C, D 2 points each Charlie and Joanne's production plan currently consists of 200 acres of wheat, 100 acres of grain sorghum, 200 acres in improved pasture, 65 acres in native pasture and 100 spring calving cows. They have decided they would like to consider using the winter pasture available from the wheat for overwintering their steer calves. They have been selling an average of 45 steers in October at a weight of 450 pounds and a price of $150 per cwt. If they graze the steers until March 15, they will average 635 pounds. Charlie expects an average selling price for the steers of $135 per cwt. in March. They project non-feed operating costs for keeping the steers to be $75 per head. They project additional feed requirements of the steers to be 50 pounds of protein supplement and 500 pounds of hay per head. The protein supplement sells for $25 per hundredweight and they will feed part of the grass hay they have been producing and selling for $75 per ton. A. Help Charlie and Joanne with their analysis by competing a partial budget of the proposed change. Proposed Change Added Income Reduced Costs Reduced Income A. Total additional costs B. Total additional revenue And reduced revenues and reduced costs Net Change in Profit (B-A) B. what advice would you give them? why? Compute the March steer selling price (S/cwt.) at which the proposed plan would break-even with the current plan. C. D. Compute the grass hay selling price ($/ton) at which the proposed plan would break-even with the current plan
