Simon sells his corn for $4.80 per bushel and the variable cost is $3.80 per bushel. The fixed cost is $132,000. If Simons farm is 1200 acres, how many bushels must be produced per acre to breakeven?
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Simon sells his corn for $4.80 per bushel and the variable cost is $3.80 per bushel. The fixed cost is $132,000. If Simons farm is 1200 acres, how many bushels must be produced per acre to breakeven?
Follow these steps:
1. Calculate break even point in bushel by dividing fixed costs with contribution pr bushel
2. Divide the break even production with total acreage
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