Exploring Cost-to-Produce through an Equine Farm Model
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The purpose of this project was to build a tool that would find the production cost of farm-produced product. This was done by using the Microsoft Excel program to build an interactive tool using expense and income inputs from farms to create a scenario farm to test the tool. A horse farm that would produce lessons was selected for the scenario. Throughout the process of building the model, the importance of good recordkeeping, even for intricate operation costs, was noticed as profits were observed to be lost quickly without the farm management being aware. For the farm scenario, the cost to produce a lesson was predicted to be $54.30. The knowledge of the production cost helped set expense budgeting and other income pricing for the farm in the scenario.