Sam decides to buya cattle ranch and leave the big city rat race.He locates an attractive 500-acre spread in Montana for $1000 per acre that includes a house, a barn, and other improvements. Sam’s studies indicate that he can run 200 cow–calf pairs and be able to market 180 500-pound calves per year. Sam, being rather thorough in his investigation, determines that he will need to purchase an additional $95,000 worth of machinery. He expects that supplemental feeds, medications, and veterinary bills will be about $50 per cow per year. Property taxes are $4000 per year, and machinery upkeep and repairs are expected to run $3000 per year. If interest is 10% a net salary of $10,000 per year, how much will he have to get for each 500-pound calf?
Sam decides to buya cattle ranch and leave the big city rat race.He locates an attractive 500-acre spread in Montana for $1000 per acre that includes a house, a barn, and other improvements. Sam’s studies indicate that he can run 200 cow–calf pairs and be able to market 180 500-pound calves per year. Sam, being rather thorough in his investigation, determines that he will need to purchase an additional $95,000 worth of machinery. He expects that supplemental feeds, medications, and veterinary bills will be about $50 per cow per year. Property taxes are $4000 per year, and machinery upkeep and repairs are expected to run $3000 per year. If interest is 10% a net salary of $10,000 per year, how much will he have to get for each 500-pound calf?
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