PDA

View Full Version : business equations


jabbahype
Oct 4, 2014, 11:00 PM
A farmer is planning to cultivate chili, corn, and tobacco. He provides USD5,100 for plowing expenses, USD 6,025 for fertilizer and USD 4190 for other expenses. Below are the expediture (USD)per acre by type of crops:




Chili
Corn
Tobacco


Plowing
30
60
90


Fertilizer
40
50
200


Other expesnses
60
40
20



Calculate the area planted with chili, corn and tobacco, if he uses all the resources.

paraclete
Oct 6, 2014, 05:43 AM
What you are asking us to do is optimise the result so what you have to decide is what is the scarse variable
30A+60B+90C = 5100
40A+50B+200C=6025
60A+40B+20C =4190

it is obvious the greatest restriction is Tobacco

but the missing variables are price and yield, what good is optimising planting without knowing the price and the yield?

This problem has little to do with Business Planning and a great deal to do with Managerial Economics