s 100 cows, and wants to evaluate the economic feasibility of artificial inseminatic salvage value, the producer estimates that the cost of bulls per year is $3,170. On p synchronize cows (using lutalyse) is $286/year.

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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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QUESTION 3
A producer has 100 cows, and wants to evaluate the economic feasibility of artificial insemination against natural mating. After taking into consideration the cost of bulls (using 4%), the operational
costs, and the salvage value, the producer estimates that the cost of bulls per year is $3,170. On the other hand, the producer estimates that if using Al, the cost for frozen semen is $1,671/year
and the cost to synchronize cows (using lutalyse) is $286/year.
Based upon this information, estimate the maximum amount (i.e. $/hour) that the producer can pay for Al labor (before Al becomes more expensive than natural mating).
Assume that for the 100 cows, 98 hours of labor are required for Al. Also assume that the producer already has proper facilities and Al tanks.
Enter your answer in the "answer" box below. Do not enter units, just enter dollars and cents (round to the nearest hundreth). For instance, if your answer is ten dollars and twenty-five cents per
hour, just enter 10.25.
Transcribed Image Text:QUESTION 3 A producer has 100 cows, and wants to evaluate the economic feasibility of artificial insemination against natural mating. After taking into consideration the cost of bulls (using 4%), the operational costs, and the salvage value, the producer estimates that the cost of bulls per year is $3,170. On the other hand, the producer estimates that if using Al, the cost for frozen semen is $1,671/year and the cost to synchronize cows (using lutalyse) is $286/year. Based upon this information, estimate the maximum amount (i.e. $/hour) that the producer can pay for Al labor (before Al becomes more expensive than natural mating). Assume that for the 100 cows, 98 hours of labor are required for Al. Also assume that the producer already has proper facilities and Al tanks. Enter your answer in the "answer" box below. Do not enter units, just enter dollars and cents (round to the nearest hundreth). For instance, if your answer is ten dollars and twenty-five cents per hour, just enter 10.25.
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