Question

At the beginning of the growing season, Cecil planted 19 acres of wheat at a cost of $5,011. Now it is harvest time. Each acre will produce 47 bushels of wheat, and wheat sells for $3.25 per bushel. Harvesting the wheat will cost Cecil $1,925.The total cost of harvesting wheat is _____

Answer 1

Answer:

Explanation:

Total cost include all expenses related to growing and harvesting of the wheat. It includes total variable cost and total fixed costs.

Cost of Growing  of wheat = $5,011

Cost of Harvesting the wheat  = $1,925

Total cost = Cost of Growing  of wheat + Cost of Harvesting the wheat

Total cost = $5,011 + $1,925

Total Cost is therefore $6,936.

Even though not asked, Total sale = 19 *47 *$3.25 = $2,902.25 which means Cecil made a loss since the proceeds from sale is lower than total cost.