Roy's Rabbitry doesn't seem like it can remain profitable under current market conditions. His possible solution is to shift into an exciting new market... guinea pigs. He constructs a partial budget see if the switch makes sense. You do the same using the following information: a. He currently has 200 doe (female) rabbits that average 3 litters per year with 5 kits per litter. b. It will cost $1,500 to convert the rabbitry to pig pens c. Half of his does can be sold to other breeders for $75 each. The rest will go cull market at $12 each. d. He will have 300 guinea pig sows who will average 5 litters per year with 3 pups per litter e. It costs $25/ year to feed and care for a doe rabbit and $7 to feed a kit to market weight f. Guinea pig sows eat a little more per year (\$29), but the pups cost the same $7 to get to market g. Each rabbit kit will sell for an average of $18 and the pig pups for $23 h. Guinea pig sows can be purchased $125 each A. Construct a vartial budget to determine if Rov's switch makes financial sense in vear one. B. If all Roy wants to do is breakeven, approximately how much more or less would he have to sell each pig pup for? C. What is his profit per litter of guinea pig pups, considering only variable costs? D. What is his profit per litter of rabbit kits, considering only variable costs? Roy's Rabbitry doesn't seem like it can remain profitable under current market conditions. His possible solution is to shift into an exciting new market... guinea pigs. He constructs a partial budget see if the switch makes sense. You do the same using the following information: a. He currently has 200 doe (female) rabbits that average 3 litters per year with 5 kits per litter. b. It will cost $1,500 to convert the rabbitry to pig pens c. Half of his does can be sold to other breeders for $75 each. The rest will go cull market at $12 each. d. He will have 300 guinea pig sows who will average 5 litters per year with 3 pups per litter e. It costs $25/ year to feed and care for a doe rabbit and $7 to feed a kit to market weight f. Guinea pig sows eat a little more per year (\$29), but the pups cost the same $7 to get to market g. Each rabbit kit will sell for an average of $18 and the pig pups for $23 h. Guinea pig sows can be purchased $125 each A. Construct a vartial budget to determine if Rov's switch makes financial sense in vear one. B. If all Roy wants to do is breakeven, approximately how much more or less would he have to sell each pig pup for? C. What is his profit per litter of guinea pig pups, considering only variable costs? D. What is his profit per litter of rabbit kits, considering only variable costs
