Question

Joe owns and operates Pick Your Own farm where people can come and pick their own fruit. He has strawberries in May and June, blueberries in July, peaches in August and Apples in September and October. Joe’s along with his expected average pounds picked per person is given below:

	Price per pound	Pounds picked
Strawberries	2.00	3.00
Blueberries	1.75	3.50
Peaches	1.50	4.00
Apples	1.25	5.00

Joe owns four tractors and each tractor can carry 20 people out to the fields. He has four drivers who are paid 3 dollars per trip. The expected number of trips per driver along with the average capacity for the season is given next:

	Trips	Capacity
May	200	90%
June	400	80%
July	500	70%
August	500	80%
September	400	85%
October	300	70%

Two full time workers maintain the fields during the harvest season at Pick Your Own. They are paid $2,500 dollars a month each and have a full benefit package that is 20% of their monthly pay. It costs 300 dollars a month to fertilize and 400 dollars a month to irrigate the fields. Fuel and maintenance expenses are estimated at 40 cents per tractor per trip. Joe pays $120,000 per year for leasing the land and $30,000 a year for utilities. Estimate Joe’s profit over for the next harvesting season.

Answer 1

Particulars	May	June	July	August	Sept	Oct
Fruits	Strawberries	Strawberries	Blueberries	Peaches	Apple	Apple
No. of Trips	200	400	500	500	400	300
No. of Drivers	4	4	4	4	4	4
No. of person per driver	20	20	20	20	20	20
Capacity	90%	80%	70%	80%	85%	70%
Total no. of person	14400	25600	28000	32000	27200	16800
Pounds per person	3	3	3.5	4	5	5
Total pounds	43200	76800	98000	128000	136000	84000
Price per pound	2	2	1.75	1.5	1.25	1.25
Total price	86400	153600	171500	192000	170000	105000
Driver Cost (3 per trip per driver)	(2400)	(4800)	(6000)	(6000)	(4800)	(3600)
worker cost (2*2500)	(5000)	(5000)	(5000)	(5000)	(5000)	(5000)
Benefit to worker(20% of pay)	(1000)	(1000)	(1000)	(1000)	(1000)	(1000)
Fertilizer Cost	(300)	300)	300)	300)	300)	300)
Irrigation	(400)	(400)	(400)	(400)	(400)	(400)
Fuel & maintenance cost(0.4*per tractor per trip)	(320)	(640)	(800)	(800)	(640)	(480)
Lease Cost (120000/12)	(10000)	(10000)	(10000)	(10000)	(10000)	(10000)
Utilities(30000/12)	(2500)	(2500)	(2500)	(2500)	(2500)	(2500)
Total Cost	(21920)	(24640)	(26500)	(26500)	(25140)	(23780)
Profit	64480	128960	145000	165500	144860	81220

Total profit = $730,020