The decision to participate in a government farm program can be analyzed with a partial budget. Assume a cotton grower wants to know if participation would increase profit. Assume it requires not planting 10% of the normal cotton acreage and in return the grower is guaranteed a price of $0.70 per lb. on 60% of normal acres. The government pays the grower the difference between $0.70 and the average market price on these acres. Use the following information to develop a partial budget (use normal table format) for the decision. A. Acreage, Yield and Price Information B. Other Information 1) Participating will result in a cash government payment of: 300.0 acres X 600lb.x(0.700.64)=$10,800.00 2) By not planting the 50 acres the grower will save the following expenses: Seed $6.00 per acre Fertilizer \& chemicals $110.00 per acre Machinery expense $17.50 per acre Labor $18.00 per acre Harvesting and hauling $70.00 per acre 3) There will be the following expense on the 50 idled acres: Seed 7.50 per acre Machinery expense $11.00 per acre Labor $8.00 per acre 4) Figure opportunity cost on all preharvest variable costs at 8% for 6 months. C. Work out a partial budget on the form and answer these questions: 1) Would you recommend the cotton grower participate in the Government farm program: WHY? 2) Other than any dollar advantage, which may or may not show on your budget, what other reason(s) would you give for participating in the program? 3) Should a land charge be included in your partial budget? Why or why not? 4) Why were no machinery fixed costs shown any place on your partial budget