Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zoe Garcia, a family farmer, wishes to expand into fresh organic milk business by purchasing 4 cows.She can purchase a head of milk cow at

Zoe Garcia, a family farmer, wishes to expand into fresh organic milk business by purchasing 4 cows.She can purchase a head of milk cow at a price of$2080 per cow.The yield per cow averages 7.2 gallons each day.She estimates feed to cost$4.19 per day per cow.She further estimates 3.1 hours of labor per day taking care of the operations for all the cows.Assume a labor rate of$9.80 per hour.Zoe estimated other overhead costs to run$45.60 per day.Assume that Zoe can sell milk at a price of$11.20 per gallon.

A).What is the contribution margin to the fixed cost generated per day?(round answer to 2 decimal places)

B).How many days will it take for Zoe to start making a profit from the cows?(round answer to 2 decimal places)

B-2).If he wishes to make profit after 56 days what should be the selling price per gallon?(round answer to 2 decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Mathematics questions