A farmer has 240 acres under cultivation at the cost of $188.99 per acre. If he averages a yield of 60 bushels per acre, what profit is expected if the price per bushel is $5.67?
A.
$79,490.40
B.
$14,400.00
C.
$45,357.60
D.
$36,290.40
To calculate the expected profit, follow these steps:
- Calculate the total cost of cultivation:Total cost=Number of acres×Cost per acre=240 acres×$188.99/acre=$45,357.60\text{Total cost} = \text{Number of acres} \times \text{Cost per acre} = 240 \text{ acres} \times \$188.99/\text{acre} = \$45,357.60Total cost=Number of acres×Cost per acre=240 acres×$188.99/acre=$45,357.60
- Calculate the total yield in bushels:Total yield=Number of acres×Yield per acre=240 acres×60 bushels/acre=14,400 bushels\text{Total yield} = \text{Number of acres} \times \text{Yield per acre} = 240 \text{ acres} \times 60 \text{ bushels/acre} = 14,400 \text{ bushels}Total yield=Number of acres×Yield per acre=240 acres×60 bushels/acre=14,400 bushels
- Calculate the total revenue from selling the bushels:Total revenue=Total yield×Price per bushel=14,400 bushels×$5.67/bushel=$81,648\text{Total revenue} = \text{Total yield} \times \text{Price per bushel} = 14,400 \text{ bushels} \times \$5.67/\text{bushel} = \$81,648Total revenue=Total yield×Price per bushel=14,400 bushels×$5.67/bushel=$81,648
- Calculate the profit:Profit=Total revenue−Total cost=$81,648−$45,357.60=$36,290.40\text{Profit} = \text{Total revenue} – \text{Total cost} = \$81,648 – \$45,357.60 = \$36,290.40Profit=Total revenue−Total cost=$81,648−$45,357.60=$36,290.40
Correct answer: D. $36,290.40