Difference between revisions of "Cane Summary"
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===What is this page?=== | |||
This page is a summary of gross margin information based on information entered on the [[Cane Assumptions]], [[Cane Growing Costs]] and [[Scenario Assumptions]] pages. | This page is a summary of gross margin information based on information entered on the [[Cane Assumptions]], [[Cane Growing Costs]] and [[Scenario Assumptions]] pages. | ||
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<blockquote> '''Tip:''' This page can be printed or saved as a PDF by right clicking on the table and selecting "Print".</blockquote> | <blockquote> '''Tip:''' This page can be printed or saved as a PDF by right clicking on the table and selecting "Print".</blockquote> | ||
===Economic Theory=== | |||
====Gross Margin==== | |||
Gross margins are calculated by subtracting variable costs from gross income. Comparing the cane gross margins of two different farming systems is a useful way to examine the profitability of adopting new management practices, which helps to inform farm management decisions. | Gross margins are calculated by subtracting variable costs from gross income. Comparing the cane gross margins of two different farming systems is a useful way to examine the profitability of adopting new management practices, which helps to inform farm management decisions. | ||
[[File:Gross Margin Formula.png|1000px|frameless|center|link=]] | [[File:Gross Margin Formula.png|1000px|frameless|center|link=]] | ||
====Operating Return==== | |||
However, farm managers also need to account for any changes in fixed costs that might occur from the adoption of new practices as well as any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability, which would require completion of the [[Depreciation]], [[Assets]] and [[Fixed Costs]] pages. | However, farm managers also need to account for any changes in fixed costs that might occur from the adoption of new practices as well as any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability, which would require completion of the [[Depreciation]], [[Assets]] and [[Fixed Costs]] pages. | ||
Revision as of 00:08, 30 March 2023
What is this page?
This page is a summary of gross margin information based on information entered on the Cane Assumptions, Cane Growing Costs and Scenario Assumptions pages.
This page displays all cane crop classes, a farm column and no entry of information is required.
Tip: This page can be printed or saved as a PDF by right clicking on the table and selecting "Print".
Economic Theory
Gross Margin
Gross margins are calculated by subtracting variable costs from gross income. Comparing the cane gross margins of two different farming systems is a useful way to examine the profitability of adopting new management practices, which helps to inform farm management decisions.
Operating Return
However, farm managers also need to account for any changes in fixed costs that might occur from the adoption of new practices as well as any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability, which would require completion of the Depreciation, Assets and Fixed Costs pages.
