I really need help with this assignment I do not understand it. I do not underst
ID: 1169233 • Letter: I
Question
I really need help with this assignment I do not understand it. I do not understand how to get the substitution ratio. If you could complete #2 and show me your work I would appreciate it.
I. SUBSTITUTION
Assume you have some 135 lb. hogs on feed and would like to have them gain another 130 lbs. before they are sold. Research has shown that any one of the following combinations of corn and soybean oil meal (SBOM) will put 130 lbs. of gain on a 135 lb. hog. Your problem is to find the combination (i.e., Ration Number) which will put on the gain for the least cost. Complete the table and answer the questions which follow.
Ration
Number
Corn
(lbs.)
SBOM
(lbs.)
Substitution
Ratio
#1
421.2
35
XXX
#2
395.7
40
______
#3
376.0
45
______
#4
360.5
50
______
#5
347.1
55
______
#6
335.8
60
_______
#7
326.2
65
_______
#8
317.5
70
_______
#9
310.0
75
_______
#10
303.8
80
_______
1. For each price combination, compute the price ratio and find the corresponding least-cost ration.
Price Least-Cost
Ratio Ration No.
a) Corn at 4.0¢ per lb., SBOM at 12¢ per lb. _____ ______
b) Corn at 5.7¢ per lb., SBOM at 7.5¢ per lb. _____ ______
c) Corn at 5.0¢ per lb., SBOM at 9¢ per lb. _____ _____
d) Corn at 6.5¢ per lb., SBOM at 14¢ per lb. _____ ______
e) Corn at 3.0¢ per lb., SBOM at 15¢ per lb. ____ ______
2. Is the least-cost ration really least-cost? Let's do one check. Using the prices in question #1a) above, figure the total cost of your least-cost ration for question #1a) and for Ration #8. How much money would you save by feeding your least-cost ration instead of Ration #8? SHOW WORK!
Ans.
3. If corn costs 4.4¢ per lb., what would SBOM have to cost to make ration #6 the least-cost ration? SHOW WORK!
Ans.
4. What happens to the least-cost ration if the price of both feeds doubles? WHY?
Ration
Number
Corn
(lbs.)
SBOM
(lbs.)
Substitution
Ratio
#1
421.2
35
XXX
#2
395.7
40
______
#3
376.0
45
______
#4
360.5
50
______
#5
347.1
55
______
#6
335.8
60
_______
#7
326.2
65
_______
#8
317.5
70
_______
#9
310.0
75
_______
#10
303.8
80
_______
Explanation / Answer
Calculate Substittuion Ratio for #2 -
Quantity of Corn in #1 = 421.1 lbs
Quantity of Corn in #2 = 395.7 lbs
Quantity of SBOM in #1 = 35 lbs
Quantity of SBOM in #2 = 40 lbs
One can see in the given table that as one moves down the combinations, quantity of corn is decreasing and quantity of SBOM is increasing.
This means that SBOM is substituted for Corn.
So, Substitution Ratio at #2 is
Substitution Ratio = Change in Quantity of corn between #1 and #2/Change in quantity of SBOM between #1 and #2
Substitution Ratio = (421.2 lbs - 395.7 lbs)/(40 lbs - 35 lbs)
Substitution Ratio = 25.5/5
Substitution Ratio = 5.1
Thus, Substittuion ratio is case of #2 is 5.1:1 or simply 5.1