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University of California, Davis ARE 140 Quiz 6 1)An enterprise budget for one acre of carrots should not contain: a

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University of California, Davis

ARE 140

Quiz 6

1)An enterprise budget for one acre of carrots should not contain:

a.            units of production inputs to be used b. family living expenses

c.             expenses for growing the crop

d.            overhead items such as land rent and taxes

e.            calculation of profit or loss

 

2.            In the class budget examples of meat goats and milk goats, the meat goat enterprise was identified as requiring approximately $60,676 in capital start up costs while the milk goat enterprise required an estimated $337,950 in start up costs. The meat goat enterprise maintained on ongoing flock of 157 does and the milk goat enterprise maintained 500 does. Which enterprise had a lower start up cost per doe?

a.            meat goat

b.            milk goat

c.             they were equal

d.            this cannot be computed from this data

 

3.            If the meat goat enterprise had $80 per doe in operating costs and $451 per doe in annual receipts, the gross margin per doe is:

a. $311

b. $451

c. $531 d. $371

e. this cannot be computed from this data

 

4.            Given that the enterprise was to be based on 25 acres of leased land, the meat goat enterprise was determined as being more appropriate than a milk goat enterprise because:

a.            the milk goat enterprise had a lower marginal cost

b.            the meat goat enterprise had a lower marginal cost

c.             the milk goat enterprise did not move the goats off the property during part of the year

d.            the milk goat enterprise required a lot of buildings and equipment that have a longer useful life than the term of the lease

e.            the milk goat enterprise had a smaller total operating budget

 

 

5.            Units of comparison are used when comparing enterprises in step 6 of the feasibility analysis so that the enterprises considered can be judged on an equal basis.

a.            True

b.            False

 

 

 

 

 

6.            Case Study #2 property has (select all that apply): a. nothing growing on it right now

b.            is planted to wheat

 

c.             the soil shaped into planting beds

d.            goats grazing on it

 

 

7.            Case Study # 2 property has the following soil map units:

a. Capay silty clay

                b. Sycamore silt loam, drained

                c. Sycamore complex, drained

                d. all of the above