Page 124 - Calculating Agriculture Cover 20191124 STUDENT - A

11-14 Large Animal: Beef, Swine and Sheep CH 11]

Converted 2% to decimal [(1 – 0.02) x ($97.02)] – [(1 – 0.02) x ($59.80)]
= ———————————————————-
(1 – 0.02)

[(0.98) x ($97.02)] – [(0.98) x ($59.80)]
= ————————————————
(0.98)

$95.08 – $58.60
= ———————
0.98

$36.48
= ———
0.98

Maximum price for pigs = $37.22

Example 2. Using Table 11.6 Budget, a pig farmer has an approximate 3% death loss on his pigs.
He expects to receive an average price for his 220# market hogs to be $97.02. What
is the Maximum price to pay for 40# pigs when all costs per pig are tallied at $59.80.

Solution:

[(1 – death loss%) (Market Sale Price/Hog)] – [(1 – death loss%) (Total Cost/Hog)]
Maximum price for pigs = ——————————————————————————————————-
(1 – death loss %)

[(1 – 3%) x ($97.02)] – [(1 – 3%) x ($59.80)]
Maximum price for pigs = ——————————————————-
(1 – 3%)

[(1 – 0.03) x ($97.02)] – [(1 – 0.03) x ($59.80)]
= ———————————————————-
(1 – 0.03)

[(0.97) x ($97.02)] – [(0.97) x ($59.80)]
= ————————————————-
(0.97)

$94.11 – $58.01
= ———————
(0.97)

$36.10
= ———–-
(0.97)

Maximum price for pigs = $37.22

The Times-Record-News, of Wichita Falls, Tx., covered an interesting human interest story last May
where-by a Rabbit Breeder sold out of his business as he found it to be a hare raising experience.

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