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A farmer has 240 acres under cultivation at $188.99 per acre. If he averages 60 bushels/acre, what is the expected profit if the price per bushel is $5.67?

  • A. $30,000
  • B. $36,290.40
  • C. $40,000
  • D. $45,000
Correct Answer: B

Rationale: To calculate the expected profit, first find the total cost: 240 acres * $188.99 = $45,357.60. Then, determine the total revenue: 240 acres * 60 bushels/acre * $5.67/bushel = $81,648. Subtract the total cost from the total revenue to find the profit: $81,648 - $45,357.60 = $36,290.40. Therefore, the expected profit is $36,290.40.