Question 16

Assume the dairy farmer in the previous problem gave his goats away because he made his real fortune from breeding special "cash" cows, which he sells at two different cattle auctions. Suppose at the first auction, he could sell 14,000 mature female cows per year at $94,000 each. Suppose at the more prestigious second auction, he could sell 1,500 prize heifers per year at $159,000 each. The dairy farmer would also like to sell the bulls, but knows they will not command very much money at the second auction; However, he hopes to sell 6,000 bulls per year at $14,500 each at the first auction. Thus, he will have to increase his trips to the first auction and decrease his trips to the second auction. The dairy farmer has determined that selling the bulls should boost his mature cow sales by 1,100 cows per year, but reduce the sales of his heifers by 450 heifers per year. What amount should be used as the annual sales figure when evaluating this project?

Group of answer choices

$118,850,000

$186,750,000

$261,950,000

$97,400,000

$87,000,000