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# Assume that owning and operating a certain machine to till 850 acres results in an ownership cost of \$5,000 per year plus operating costs of \$5.00...

1.   Assume that owning and operating a certain machine to till 850 acres results in an ownership cost of \$5,000 per year plus operating costs of \$5.00 per acre including labor. Leasing a machine with a field capacity of 5.0 acres per hour to do the same work would cost \$40 per hour, plus the same operating costs. Hiring the work done on a custom basis would cost \$12 per acre. Which alternative has the lowest total cost?

lowest total cost... View the full answer

Ownership costs = \$5 , 000 Operating costs = \$5 . 00 * 850 = \$4 , 250 Total costs ownership costs = \$5 , 000 +... View the full answer

Ownership cost = 5000. Since the acres owned is 850, (850*5/acre) = 4250 dollars Hence, cost of owning... View the full answer

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