1. Assume that a rice milling operation converts paddy (rice as a growing crop or when harvested but not yet milled) at the rate of 70 percent (0.7) and has saleable by-products equal to 25 percent of the paddy weight. Processing costs per lb. of paddy have been calculated at $0.20 per lb. on the basis of the mill's total annual costs divided by the number of lbs. of paddy processed. The buying price of the paddy was $1.70 per lb. and the by-products have a value of $0.50 per lb. Calculate the breakeven selling price per lb. of milled rice (i.e., processing cost per lb. of paddy).
a. $2.111 per lb.
b. $2.328 per lb.
c. $2.412 per lb.
d. $2.543 per lb.
e. None of the above
2. Assume an example involving a consignment of 200 lbs. of tomatoes as follows:
100 lbs. sold at $3.00/lb.
60 lbs. sold at $1.60/lb.
20 lbs. sold at $1.20/lb.
10 lbs. sold at $0.70/lb.
10 lbs. which cannot be sold
Calculate the average selling price per lb.
a. $0.635 per lb.
b. $1.655 per lb.
c. $2.015 per lb.
d. $2.100 per lb.
e. $2.135 per lb.
3. Assume the buying price of tomatoes from the farmer is $0.40 per lb., the weighted average wholesale selling price is $0.90 per lb. and the weighted average retail price is $1.12 per lb. Calculate the share to the producer, wholesale-to-farm margin, and retail-to-wholesale margin, respectively.
a. 35.7%; 44.6%; 18.6%
b. 35.7%; 43.6%; 19.6%
c. 36.7%; 44.6%; 19.6%
d. 35.7%; 44.6%; 19.6%
e. None of the above
4. Trucks can be classified as:
a. Common carriers
b. Contract carriers
c. Exempt carriers
d. Private trucking
e. All of the above
5. Ordinarily, rates per ton/mile are the highest for which of the following transport mode?
a. Barges
b. Rails
c. Trucks
d. Air
e. The rates for all of the above are the same