A farm seeking to improve its operations has decided to eliminate the production of Bananas (10ha)...

A farm seeking to improve its operations has decided to eliminate the production of Bananas (10ha) and substitute it with onions (10ha). Four laborers are to be laid off in the process. The output Selling price and costs associated with each of the enterprise is given below:

Banana	Onions
Expected Yield = 50 Tonnes/ha	Expected Yield = 30 Tonnes/ha
Selling Price: $35000/tonne	Selling Price: $50000/tonne
Production Cost	Production Cost
Seed=5 tonnes/ha at $2000/tonne	Seed=10kg at $500/kg
Marketing transportation = $2000/tonne	Fertiliser=$3000/kg selling at $10000/50kg bag

Given information above prepare the partial budget for the farm and advise the manager on the intended substitution

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Expert Solution

Rahul Sunny answered 1 year ago

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