Question

Use the average numbers above. Let's say that in 1879 an owner drove 1,000 head of cattle from south Texas to market in Dodge City but lost 100 cattle to stampedes, drowning, and disease. What was his profit or loss for the entire venture?

a. Profit
b. Loss
c. No profit, no loss
d. Insufficient information to determine

Answer 1

To determine the venture's profit or loss, we need costs data, which is not provided. We can only calculate potential revenues from 900 surviving cattle, which is insufficient to ascertain profit or loss.

Step-by-step explanation:

The question asks us to calculate the profit or loss for a cattle drive venture in 1879, based on predefined numbers. Initially, the owner has 1,000 head of cattle, and we are told that cattle could be sold for $30 to $50 per head. If we take a conservative estimate at $30 per head, the total potential revenue would be $30,000 for 1,000 cattle. However, the owner loses 100 cattle, meaning only 900 cattle could potentially be sold. Multiplying 900 by $30 gives us $27,000. Without explicit information on costs, it is impossible to say if that will result in a profit or loss. Therefore, the correct answer is d. Insufficient information to determine.