In examining the feasibility of an enterprise of egg laying hens (chickens), you discover that while the chickens can live successfully on pasture, if you give them a feed of barley, sunflower seeds and maize, you will increase the egg production per unit of time. a) Since your goal is to maximize the profitability of the enterprise, what do you have to consider? b)On a per hen-basis what things would you need to consider to make the determination? c) Why would the price at which you sell the eggs matter? Because you need to get the gross margin per egg produced of both production schemes.
In examining the feasibility of an enterprise of egg laying hens (chickens), you discover that while the chickens can live successfully on pasture, if you give them a feed of barley, sunflower seeds and maize, you will increase the egg production per unit of time. a) Since your goal is to maximize the profitability of the enterprise, what do you have to consider? b)On a per hen-basis what things would you need to consider to make the determination? c) Why would the price at which you sell the eggs matter? Because you need to get the gross margin per egg produced of both production schemes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In examining the feasibility of an enterprise of egg laying hens (chickens), you discover that while the chickens can live successfully on pasture, if you give them a feed of barley, sunflower seeds and maize, you will increase the egg production per unit of time.
a) Since your goal is to maximize the profitability of the enterprise, what do you have to consider?
b)On a per hen-basis what things would you need to consider to make the determination?
c) Why would the price at which you sell the eggs matter? Because you need to get the gross margin per egg produced of both production schemes.
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