Question

17. A farmer has 100 acres of tillable land on which corn, tomatoes, beans, peas, and carrots can be planted. The labor requirements, plant costs, and gross income for I acre of each of these crops are as follows: Labor Gross (worker-hours) Costs (S) Income (S) Corn 95 1300 275 345 435 20 200 Tomatoes Beans Peas Carrots 120 25 35 40 75 nd The farmer has available up to 3600 hr of labor at $7.25/hr. However, the labor and plant costs must be paid before any income from the sale of the produce is realized. The farmer has $3000 in capital to invest in this year's planting and can borrow up to another $12,000 if desired. Any such loan would have a 9% annual interest rate but would be repaid within 4 months. Land unused for any of these vegetables must be maintained by planting ground cover. One acre of cover crops requires 2 hr of labor and costs $9. Determine a planting schedule that maximizes net income

Answer 1

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