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Hennepin, IL | Fixed costs are a moot point when comparing 2 hypothetical scenarios ie: plant or dont plant/buy the board, since youre gonna have those expenses regardless. In algebra, its having the same variable on both sides of the equation, they cancel each other out. So youre left with the variable expenses of each scenario. Whichever scenario has the most left over after variable expenses, has the most to put towards fixed expenses. Even if theyre both a loss at the end of the day, whichever scenario covers more fixed expenses is the winner. Now the question is does planting every acre leave the most after variable expenses (seed, fert, chem, fuel, repairs, insurance)? Or does leaving it idle, buying the board, and hoping for a gain make you more? | |
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