Question

The Stinson family owns a farm. Three alternatives exist for how to use the farm: a) Grow wheat. Wheat yield would be 70 bu/acre. The price of wheat is $3.50/bu and production expenses are $140/acre b) Grow Barley. Barley yield would be 50 bu/acre. The price of barley is $2.50/bu and production expenses are $150/acre c) Lease out the acres. the Neighbor will bay $80/acre but they will still have expenses of $35/acre.

Answer 1

The question involves a business decision for a farm. Calculations show that growing wheat, with a net profit of $105 per acre, is the most profitable option for the Stinson family farm compared to growing barley or leasing the farm.

Step-by-step explanation:

The student's question involves a business decision regarding which crop to grow for maximum profitability on the Stinson family farm. To advise accurately, one would calculate the net profit per acre for each option: wheat, barley, and leasing. For wheat, the net profit is calculated by multiplying the yield (70 bu/acre) by the price ($3.50/bu) and subtracting the expenses ($140/acre), resulting in a net profit of $105 per acre. Similarly, for barley, the net profit is the yield (50 bu/acre) multiplied by the price ($2.50/bu) minus the expenses ($150/acre), totaling $25 per acre. Finally, leasing yields a net profit of $80 per acre less expenses of $35, amounting to $45 per acre. Comparing the three net profits, growing wheat yields the highest profit of $105 per acre.

Answer 2

Following are the solution to the given questions:

Step-by-step explanation:

Please find the complete question in the attached file.

In this question, the Stinsons would prefer the most profitable alternative

Formula:

`Profit = Income - Costs = (price * amount) - Costs \ of \ production`

In point A:

`\to Profit = (70 * \$3.5) - \$140`

`= \$245 - \$140\\\\ = \$105 \ / \ acre`

In point B:

`\to Profit = (50 * \$2.5) - \$150`

`= \$125 - \$150\\\\ = - \$25 \ / \ acre \ (Loss)`

In point C:

`\to Profit = \$80 - \$35=\$45 \ / \ acre`