Question

In: Economics

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 2 years ago
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