Answer Happy

Part II. Questions 7-12 pertain to this scenario, and incrementally go through the individual steps and calculations to address these considerations: You have a group of stocker steers that average 725 lb; current market price for these calves is $140/cwt. You could put these calves into a feedlot where they should finish in five to six months at 1,325 lb with an estimated cost of gain of $87/cwt. Part III What would be the break-even price on these cattle as fed steers coming out of the feedlot (express as $ per cwt)? • If these cattle actually sold as fed steers for $119.50/cwt, how much money would you make or loose per head? If you thought the cost of gain would really more likely be $92/cwt, how would that change: your break-even considerations?