Quelpr
1 markFarm Organisation and Planning

CSEC Agricultural Science · May/June 2013 · Paper 2 · Question 7(b)(i)

Farmer Mary plans to produce sweet potatoes on 10 hectares and considers purchasing a tractor instead of hiring tractor services at $110 per hectare. Table 1 shows her budget projections.

What type of budget should Mary do for the change in her plans, that is, to buy a tractor instead of hiring a tractor?

This question uses a figure or table from the paper — you'll see it when you practise.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 7(a)State THREE subsidies or incentives that the government could provide to farmers to encourage the expansion of cassava production.[3 marks]
  2. 7(b)(ii)Identify TWO fixed costs and TWO variable costs in Table 1.[3 marks]
  3. 7(b)(iii)Calculate the annual depreciation on the tractor, using the following formula: (Cost of tractor - net disposable value of tractor) / 5 = Depreciation[1 mark]
  4. 7(b)(iv)Mary also decides that she will rent her tractor at a cost of…[2 marks]
  5. 7(b)(v)Calculate net change in profit or loss, using the following formula: Net change in profit/loss = Additional Income calculated in (iv) - Additional Costs (shown…[2 marks]

More practice: the rest of this paper · more Farm Organisation and Planning questions · all CSEC Agricultural Science past papers