A farmer intends to cultivate maize on a 5‑hectare field. The expected base yield is 4 tonnes per hectare and the market price is $\text{₦}120$ per kilogram.

Two fertilizer regimes are available:

*Regime A*: 100 kg of fertilizer per hectare at $\text{₦}15{,}000$ per 100 kg, giving a 10 % increase in yield.

*Regime B*: 150 kg of fertilizer per hectare at $\text{₦}20{,}000$ per 150 kg, giving an 18 % increase in yield, but it also requires extra labour costing $\text{₦}5{,}000$ per hectare.

For each regime, compute the net profit per hectare and state which regime is more profitable. Show all steps of your calculation.

Question

A farmer intends to cultivate maize on a 5‑hectare field. The expected base yield is 4 tonnes per hectare and the market price is $\text{₦}120$ per kilogram.

Two fertilizer regimes are available:

*Regime A*: 100 kg of fertilizer per hectare at $\text{₦}15{,}000$ per 100 kg, giving a 10 % increase in yield.

*Regime B*: 150 kg of fertilizer per hectare at $\text{₦}20{,}000$ per 150 kg, giving an 18 % increase in yield, but it also requires extra labour costing $\text{₦}5{,}000$ per hectare.

For each regime, compute the net profit per hectare and state which regime is more profitable. Show all steps of your calculation.

Accepted Answer

Regime B is more profitable; net profit per hectare = ₦541,400 (Regime A net profit = ₦513,000).

Neco Model Questions Vol1 2020 Geography Question 20

Answer Options

About This Question

Master the Exam!