A Farmer Has 150 Acres of Land Suitable for Cultivating

question 90

Essay

A farmer has 150 acres of land suitable for cultivating crops A and B. The cost of cultivating crop A is $40/acre, whereas that of crop B is $60/acre. The farmer has a maximum of $7,400 available for land cultivation. Each acre of crop A requires 20 labor-hours, and each acre of crop B requires 25 labor-hours. The farmer has a maximum of 3,300 labor-hours available. If he expects to make a profit of $170/acre on crop A and $180/acre on crop B, how many acres of each crop should he plant in order to maximize his profit?
__________ acres of crop A, __________ acres of crop B
What is the largest profit the farmer can realize? $__________
Are there any resources left over?
$__________ left over, __________ acres of land left over, __________ labor-hours left over

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Definitions:

Factoring Fee

The cost charged by a third party to a business for providing factoring services—financing based on the business's receivables.

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.

Journal Entry

A record in accounting that logs a transaction and its impact on account balances in debit and credit terms.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by the average accounts receivable.