Respuesta :
Answer:
10,000 pounds of Tomatoes; 780 pounds of Green Beans; and 5,000 pounds of Red Pepper.
Explanation:
The following information was provided in the question and computed.
Yield per acre (pound): 2,000 (asparagus), 7,200 (corn), 25,000 (tomatoes), 3,900 (green beans), 12,500 (red pepper).
Cost per acre: $1,800 (asparagus), $1,740 (corn), $6,000 (tomatoes), $3,000 (green beans), $2,700 (red pepper).
Selling price per pound: $1.90 (asparagus), $0.10 (corn), $3.25 (tomatoes), $3.40 (green beans), $3.45 (red pepper).
Sales volume limit (pound): 1,200 (asparagus), nil (corn), 10,000 (tomatoes), 2,000 (green beans), 5,000 (red pepper).
Given the above, we compute the cost per pound for each vegetable as follows: [tex]\frac{Cost Per Acre}{Yield Per Acre}[/tex]
Cost per pound: $0.9 (asparagus), $0.24 (corn), $0.24 (tomatoes), $0.77 (green beans), $0.22 (red pepper).
Using selling price per pound and Cost per pound, we compute the contribution per pound for each vegetable as follows: [tex]Selling Price Per Pound - Cost Per Pound[/tex]
Contribution per Pound: $1.00 (asparagus), -$0.14 (corn), $3.01 (tomatoes), $2.63 (green beans), $3.23 (red pepper).
To maximize revenue and profit, Art must focus on the vegetables with the highest contribution per Pound, in the following order.
4th (asparagus), 5th (corn), 2nd (tomatoes), 3rd (green beans), 1st (red pepper).
He will therefore plant according to the limit (volume) he can sell in the market.
1st plant: Red pepper = 5,000 pounds market limit (using [tex]\frac{Sales Limit}{Yield per Acre} = \frac{5,000}{12,000}[/tex] = 40% of the land available).
2nd plant: Tomatoes = 10,000 pounds market limit (using [tex]\frac{10,000}{25,000}[/tex] = 40% of the land available).
3rd plant: Green beans = using 20% of the land left = 20% * 3,900 yield per acre = 780 pounds.