Subjects agriculture economics

Broiler Chicken Profit 538909

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Broiler Chicken Profit 538909


1. **Problem Statement:** Calculate the total revenue, total cost, and profit from selling broiler chickens with given weights, mortality rate, and costs. 2. **Given Data:** - Selling price for chickens > 1.8 kg: 70,000 per chicken - Mortality rate: 5% (meaning 95% survive) - Costs: a. DOC per box: 475,000 b. Feed: - Starter phase: 16 sacks, each 50 kg, price per sack 375,000 - Finisher phase: 16 sacks, price per sack 350,000 c. Labor: 5 workers, each paid 2,500,000 d. Medicine and minerals: 500,000 - At harvest, chickens are divided into two grades: - Grade A (weight ≥ 1.8 kg): 70% of chickens, price 75,000 each - Grade B: 30% of chickens, price 60,000 each 3. **Step 1: Calculate the number of chickens initially and surviving** Let $N$ be the initial number of chickens. Surviving chickens = $N \times (1 - 0.05) = 0.95N$ 4. **Step 2: Calculate revenue from Grade A and Grade B chickens** Grade A chickens = $0.7 \times 0.95N = 0.665N$ Grade B chickens = $0.3 \times 0.95N = 0.285N$ Revenue from Grade A = $0.665N \times 75,000 = 49875N$ Revenue from Grade B = $0.285N \times 60,000 = 17100N$ Total revenue = $49875N + 17100N = 66975N$ 5. **Step 3: Calculate total costs** - DOC cost = 475,000 - Feed cost starter = $16 \times 375,000 = 6,000,000$ - Feed cost finisher = $16 \times 350,000 = 5,600,000$ - Labor cost = $5 \times 2,500,000 = 12,500,000$ - Medicine and minerals = 500,000 Total cost = $475,000 + 6,000,000 + 5,600,000 + 12,500,000 + 500,000 = 25,075,000$ 6. **Step 4: Calculate profit** Profit = Total revenue - Total cost = $66975N - 25,075,000$ 7. **Step 5: Find $N$ if possible or express profit in terms of $N$** Since $N$ is not given, profit depends on $N$. **Final answers:** - Total revenue = $66975N$ - Total cost = 25,075,000 - Profit = $66975N - 25,075,000$ This means to find exact profit, the initial number of chickens $N$ must be known.