Neco Model Questions Vol1 2023 Geography Question 23

Farm X cultivates maize on \(5\) ha. Expected yield is \(3.2\) t/ha and market price is ₦\(120\) per kg. Variable cost is ₦\(150{,}000\) per ha and fixed cost is ₦\(200{,}000\). Fertilizer constitutes \(10\%\) of the variable cost and the government subsidises \(20\%\) of the fertilizer cost.\n\nFarm Y cultivates sorghum on \(4\) ha. Expected yield is \(2.5\) t/ha and market price is ₦\(100\) per kg. Variable cost is ₦\(130{,}000\) per ha and fixed cost is ₦\(180{,}000\). Fertilizer is also \(10\%\) of the variable cost and the subsidy is \(15\%\) of the fertilizer cost.\n\nCalculate the net profit per hectare for each farm after accounting for the subsidy, and state which farm has the higher profit per hectare.