Question
In: Economics
Suppose that a small family farm sold its output for $100,000 in a given year. The...
Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations. What is the family’s accounting cost? What is the family’s economic cost? Could the family’s economic cost ever exceed its accounting cost? Why or why not
two paragraphs or more
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Bonita Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...
Bonita Ranch & Farm is a distributor of ranch and farm
equipment. Its products include small tools, power equipment for
trench-digging and fencing, grain dryers, and barn winches. Most
products are sold direct via its company Internet site. However,
given some of its specialty products, select farm implement stores
carry Bonita’s products. Pricing and cost information on three of
Bonita’s most popular products are as follows.
Item
Stand-Alone Selling Price
(Cost)
Mini-trencher
$3,900
($2,200)
Power fence hole auger
1,320
($880)...
Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...
Buffalo Ranch & Farm is a distributor of ranch and farm
equipment. Its products include small tools, power equipment for
trench-digging and fencing, grain dryers, and barn winches. Most
products are sold direct via its company Internet site. However,
given some of its specialty products, select farm implement stores
carry Buffalo’s products. Pricing and cost information on three of
Buffalo’s most popular products are as follows.
Item
Stand-Alone Selling Price
(Cost)
Mini-trencher
$2,900
($1,640)
Power fence hole auger
984
($656)...
Coronado Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...
Coronado Ranch & Farm is a distributor of ranch and farm
equipment. Its products include small tools, power equipment for
trench-digging and fencing, grain dryers, and barn winches. Most
products are sold direct via its company Internet site. However,
given some of its specialty products, select farm implement stores
carry Coronado’s products. Pricing and cost information on three of
Coronado’s most popular products are as follows.
Item
Stand-Alone Selling Price
(Cost)
Mini-trencher
$3,000
($1,720)
Power fence hole auger
1,032
($688)...
Waterway Ranch & Farm is a distributor of ranch and farm equipment. Its products include small...
Waterway Ranch & Farm is a distributor of ranch and farm
equipment. Its products include small tools, power equipment for
trench-digging and fencing, grain dryers, and barn winches. Most
products are sold direct via its company catalogue and Internet
site. However, given some of its specialty products, select farm
implement stores carry Waterway’s products. Pricing and cost
information on three of Waterway’s most popular products are as
follows.
Item
Stand-Alone Selling Price
(Cost)
Mini-trencher
$ 4,032
($2,240)
Power fence hole...
IRISH CASE STUDY The O’Rourke family lives on a small farm in Iowa and comprises David,...
IRISH CASE STUDY The O’Rourke family lives on a small farm in
Iowa and comprises David, aged 30; his wife, Mary, aged 29; and two
children: Bridget, aged 7, and Michael, aged 6. Both David and Mary
are second-generation Irish. Before purchasing their farm 5 years
ago, David sold farm equipment in Ohio. The O’Rourkes are Catholic;
Mary converted to Catholicism when they married. 7.Describe the
O’Rourke family’s communication patterns. 8.What are the
predominant health conditions among Irish immigrants? 9.Explain...
The O’Rourke family lives on a small farm in Iowa and comprises David, aged 30; his...
The O’Rourke family lives on a small farm in Iowa and comprises
David, aged 30; his wife, Mary, aged 29; and two children: Bridget,
aged 7, and Michael, aged 6. Both David and Mary are
second-generation Irish. Before purchasing their farm 5 years ago,
David sold farm equipment in Ohio. The O’Rourkes are Catholic; Mary
converted to Catholicism when they married. David, who works long
hours outdoors, is concerned about profitability from his corn crop
because of the unpredictable size...
Julie is 45 year old mother and lives on a cropping farm, run as a family...
Julie is 45 year old mother and lives on a cropping farm, run as
a family business, with her husband and his brother. Julie has
three children same, aged 14; Katie, aged 12 and James aged 8.The
two older children attend boarding school and return home for
holidays. James is at home and attends the local primary school 50
km away.
Both Julie's boys have type 1 diabetes that she manages.
Julie has lived with her diabetes for 37 years...
Julie is 45 year old mother and lives on a cropping farm, run as a family...
Julie is 45 year old mother and lives on a cropping farm, run as
a family business, with her husband and his brother. Julie has
three children same, aged 14; Katie, aged 12 and James aged 8.The
two older children attend boarding school and return home for
holidays. James is at home and attends the local primary school 50
km away.
Both Julie's boys have type 1 diabetes that she manages.
Julie has lived with her diabetes for 37 years...
Equipment costing $100,000 was sold in the middle of the 4th year for a MV of...
Equipment costing $100,000 was sold in the middle of the 4th
year for a MV of $20,000.
Tax rate : 40%.
Annual revenues : $55,000 per year
Annual expenses : $5,000 per year.
Using only the GDS method, populate a table with the NIAT and
ATCF. Show all formulas and calculations.
Using an after tax MARR of 18%, show if this project is
profitable.
The equipment is depreciated using 5-yr MACRS depreciation
factors.
A sample of 30 recently sold single-family houses in a small city is selected. Develop a...
A sample of 30 recently sold single-family houses in a small
city is selected. Develop a model to predict the selling price (in
thousands of dollars), using the assessed value (in thousands of
dollars) as well as time (in months since reassessment). The houses
in the city had been reassessed at full value one year prior to the
study. The results are stored in House1.xls.
a. State the multiple regression equation.
b. Interpret the meaning of the slopes in this...
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