Average Average Total Profits Nitrogen Wheat yield variable total cost (price average total Produce – (lbs / (bushels / cost cost)(yield) wheat? acre) acre) NO 0.00 ----------- 23 Yes 0.00 25 Yes 10.00 30.5 Yes 20.00 33 Yes 30.00 35 Yes 40.00 36 Yes 50.00 36.2 Yes 60.00 Should we produce wheat? _____________ How do we know? (Question 10 revisited) Price of wheat 1.75 $ / bushel Price of nitrogen 0.1 $ / lb Fixed costs 50 $ / acre Other variable costs 60 $ / acre Average Average Total Profits Nitrogen Wheat yield variable cost (price average total Produce – (lbs / (bushels / cost cost)(yield) wheat? acre) acre) NO 0.00 ----------- 23 Yes 0.00 25 Yes 10.00 30.5 Yes 20.00 33 Yes 30.00
Produce wheat? Nitrogen (lbs / acre) Wheat yield (bushels / acre) Average variable cost Average total cost Total Profits (price – average total cost)(yield) NO 0.00 ----------- Yes 0.00 23 Yes 10.00 25 Yes 20.00 30.5 Yes 30.00 33 Yes 40.00 35 Yes 50.00 36 Yes 60.00 36.2 Should we produce wheat? _____________ How do we know? (Question 10 revisited) Price of wheat 1.75 $ / bushel Price of nitrogen 0.1 $ / lb Fixed costs 50 $ / acre Other variable costs 60 $ / acre Produce wheat? Nitrogen (lbs / acre) Wheat yield (bushels / acre) Average variable cost Average cost Total Profits (price – average total cost)(yield) NO 0.00 ----------- Yes 0.00 23 Yes 10.00 25 Yes 20.00 30.5 Yes 30.00 33