Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. • Prevailing price of corn/sack is P1,200. • He incurred the following annual expenses (P): • Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500 insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 Variable costs: seeds@5,000; fertilizer@10,500: labor@18,0003; pesticides@8,000; tractor@3,000; transportation,@3,500.

Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. • Prevailing price of corn/sack is P1,200. • He incurred the following annual expenses (P): • Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500 insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 Variable costs: seeds@5,000; fertilizer@10,500: labor@18,0003; pesticides@8,000; tractor@3,000; transportation,@3,500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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