You want to develop an enterprise budget to farm wheat for 6 years to see if it is profitable. A. MACHINERY NEEDED Machine Cost 1. Tractor Annual Insurance $150 $45 2. Chisel Salvage Value $50,000 $6,000 $7,500 $5,700 $3,800 $150,000 $17,600 $18,800 $19,800 $19,700 Annual Taxes $65 $20 S20 $20 $95 3. Disk 4. Grain drill 5. Pickup $45 $55 $620 B. MACHINERY CALCULATIONS - average annual ownership costs Depreciation Interest (8%) Taxes Insurance Tractor Chisel Disk Grain drill Pickup TOTALS Cost per acre C. OTHER INFORMATION 1. Expected yield 35.0 bushels per acre 2. Selling price $5.25 per bushel 3. Labor cost (pre-harvest)$9.80 per acre 4. Land rent $47.50 per acre 5. Fertilizer cost $26.50 per acre 6. Seed cost $25.00 per acre 7. Chemical cost $12.75 per acre 8. Tractor operating cost $13.20 per acre 9. Operating cost on other machinery and equipment $5.65 per acre 10. Custom harvesting, hauling, etc. $25.00 per acre WHEAT BUDGET I. REVENUE Total Revenue II. OPERATING COSTS Preharvest Harvest Total Operating Costs III. OWNERSHIP COSTS Total Ownership Costs IV. TOTAL COSTS V. GROSS MARGIN PER ACRE VI. PROFIT PER ACRE Use the information above and the enterprise budget you've created to answer the following questions: With yield of 35 bu. per acre, what is the break-even selling price? 1. Ans. 2. If the selling price was only $4.85 per bu., what per acre yield would be necessary to break- even? Ans. 3. If the expected yield was only 30 bu. per acre, what selling price would be required to just break- even on the operation? Ans