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Using Excel to calculate daily break - even prices Prices for commodities obviously change on a daily basis. Sometimes we have expenses ( storage )
Using Excel to calculate daily breakeven prices
Prices for commodities obviously change on a daily basis. Sometimes we have expenses storage that change on a daily basis as well. Your objective is to create a working Excel document that calculates a breakeven price on a stored commodity as variables change.
Mr Farmer is having trouble understanding when he should sell his wheat to make a profit. His marketing plan has always been to sell when he needs money to pay bills which isnt working for him. He has hired you to help him with this process.
Here is his known information;
He finished harvesting his wheat on July XX and has had it on farm storage since that day.
Wheat is stored on farm but he calculates that it still costs him per bushel per day for things like electricity, drying, repairs, etc.
His yield for wheat was bushels per acre on his last crop.
His total cost variable and fixed was $ per acre on his last crop.
He has the option to take his wheat to any of the following terminals; Salina, Ogallah, Goodland, Kansas City or Dodge City. His wheat is currently stored in Hays, KS
His semitruck can haul bushels of wheat.
His semitruck averages miles per gallon.
Diesel price is currently $ per gallon.
You need to organize and develop an efficient working spreadsheet that will address a breakeven point for his crops. This spreadsheet should take into consideration storage and transportation. These two things will change the breakeven point on a daily basis and a destination basis. The breakeven point on this spreadsheet should change as he puts in different destinations, prices for diesel, truck sizes, mpgs and storage time.
Formula for breakeven price Total costYield
Show pictures of the excel file or attach please
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