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    Carolnelson's Avatar
    Carolnelson Posts: 1, Reputation: 1
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    #1

    Aug 7, 2010, 07:15 PM
    cost accounting
    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?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Aug 7, 2010, 11:31 PM

    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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