Question

John and Kim have a potato farm in Meridian, Idaho. They have four fields and he productivity of each field is: Assume that each field is same size and quality and that the variable costs of farming are $25,000 per field per year. In 2004, John and Kim received $6.35 per 100 pounds of potatoes in 2005, they received $4.50 per 100 pounds of potatoes. Complete the following table (Enter your responses as integers.) John and Kim planned fields in 2004 and field in 2005 (Enter your responses as integers)

Answer 1

Answer:

YEAR 2004 Price of $6.35 per houndred ton.

Field/ 100th of Tons/ Revenue/   Cost/ Contribution/

I        10,000    63,500  25,000  38,500

II        8,000    50,800  25,000  25,800

III        5,000     31,750   25,000     6,750

IV        3,000     19,050   25,000    -5,950

YEAR 2005 Price of $4.50 per houndred ton.

Field/ 100th of Tons/ Revenue/   Cost/ Contribution/

I        10,000    45,000  25,000  20,000

II        8,000    36,000  25,000    11,000

III        5,000    22,500  25,000   -2,500

IV        3,000     13,500  25,000   -11,500

Explanation:

We will multiply the selling price of houndred pounds of potatoes by each field cappacity.

Then we subtract the cost for operate the land and get the contribution per year.

MISSING INFORMATION

FIELD    Hounderd of Tons produced

   I              10,000

  II                8,000

 III                5,000

 IV               3,000