A farmer in Vietnam has 240,000 square metres (m2) of land on which he grows maize, barley, potatoes, and wheat. He is planning his production for the next growing season. The following information is provided relating to the anticipated demand and productive capacity for the next season: Contribution per tonne of output in dollars m² required per tonne of output Estimated sales demand (tonnes) Required area to meet sales demand (m²) Maize $160 80 3000 240 000 Potatoes (ii). Calculate the total contribution based on the mix of crops. $112 32 3000 96 000 Barley $96 24 3000 72 000 Wheat $80 16 3000 48 000 It is not possible in the short run to increase the area of land beyond 240,000m2 for growing the above crops. Required: (i). Advise on the mix of crops that should be produced during the period

A farmer in Vietnam has 240,000 square metres (m2) of land on which he grows maize, barley, potatoes, and wheat. He is planning his production for the next growing season. The following information is provided relating to the anticipated demand and productive capacity for the next season: Contribution per tonne of output in dollars m² required per tonne of output Estimated sales demand (tonnes) Required area to meet sales demand (m²) Maize $160 80 3000 240 000 Potatoes (ii). Calculate the total contribution based on the mix of crops. $112 32 3000 96 000 Barley $96 24 3000 72 000 Wheat $80 16 3000 48 000 It is not possible in the short run to increase the area of land beyond 240,000m2 for growing the above crops. Required: (i). Advise on the mix of crops that should be produced during the period

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 25E

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