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transportation cost

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At what point does each become profitable?
At what distance does wheat replace potatoes?
At what point would corn replace wheat?

Please show steps involved-need to know how to do these.


Solution Preview

If the distance to market more, the transportation cost will be high and profit earned will be less. Please check whether the transportation cost is miles per dollar or in dollars per mile. I assume dollars per mile. If it is otherwise, change the calculations.

Suppose the distance at which market just breaks even is X, then
Price received =Production cost + transportation cost per mile * X
Solving ...

Solution Summary

Profit points are determined.