Quiz Flow
Business Management
A soybean producer decides to store his beans in the local elevator for six months. The price at harvest is $5.20 per bushel and the elevator charges 1.5 cents per month/per bushel for storage. He has 5,000 bushels to sell and must borrow $26,000 at 10 percent interest for six months while he stores the soybeans. What price must he receive for his soybeans to break even and cover his storage and opportunity costs
A soybean producer decides to store his beans in the local elevator for six months. The price at harvest is $5.20 per bushel and the elevator charges 1.5 cents per month/per bushel for storage. He has 5,000 bushels to sell and must borrow $26,000 at 10 percent interest for six months while he stores the soybeans. What price must he receive for his soybeans to break even and cover his storage and opportunity costs
A soybean producer decides to store his beans in the local elevator for six months. The price at harvest is $5.20 per bushel and the elevator charges 1.5 cents per month/per bushel for storage. He has 5,000 bushels to sell and must borrow $26,000 at 10 percent interest for six months while he stores the soybeans. What price must he receive for his soybeans to break even and cover his storage and opportunity costs
Answer: $5.55
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