Question

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. per-unit variable cost would be $3. if her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year respectively, and she plans to grow 1,200 rosebushes each year on this land, what will be the utilization of this land?

Answer 1

The utilization of the greenhouse and nursery with an effective capacity of 2,000 rosebushes per year, when planning to grow 1,200 rosebushes, would be 60%.

Step-by-step explanation:

The utilization of land for a greenhouse owner considering the acquisition of licensing rights for a new variety of rosebush is a question that involves calculating the percentage of the effective capacity that is used. In this case, if the owner plans to grow 1,200 rosebushes on land with an effective capacity of 2,000 rosebushes per year, the utilization of the land would be given by the formula:

Utilization = (Actual Output / Effective Capacity) × 100%

Thus, the calculation would be:

Utilization = (1,200 / 2,000) × 100% = 60%

Therefore, the utilization would be 60%, meaning 60% of the effective capacity is being used.

Answer 2

3000 + 2000 = 5000 + 6200 . total land value