Projections for Planning Purposes Only -- Not to be Used without Updating 2014 Estimated Costs and Returns per Animal November- February Stockers - 320 Head North Texas Extension District - 4 Number of head 320 REVENUE Head Stocker Total Revenue 0.975 VARIABLE COSTS Production Costs Stocker Purchase Grazing Acre Lease Gain Contract Health Feed Bermuda Hay Mineral Miscellaneous Miscellaneous - Stocker Fuel Lube (As a % of fuel) Repairs Marketing Labor Interest on Credit Line Total Variable Costs Pay Weight $/Unit Total CWT $165.00 $1,077.86 $1,077.86 Units $/Unit Total CWT $191.50 $900.05 $288,016.00 0.25 187.95 1 Acre Pounds Head $10.00 $0.25 $30.00 $2.50 $46.99 $30.00 $800.00 $15,035.90 $9,600.00 1 0.5 Roll Pound $75.00 $0.05 $75.00 $0.03 $24,000.00 $8.00 1 1 10.0% 1 0.975 1 Head Head Percent Head Head Head $10.00 $3.21 $3.21 $0.96 $11.00 $15.33 4.75% $10.00 $3.21 $0.32 $0.96 $10.73 $15.33 $21.64 $1,116.75 $3,200.00 $1,027.50 $102.75 $307.36 $3,432.00 $4,906.02 $6,923.78 $357,359.31 6.70 Quantity 4.70 Planned Returns Above Variable Costs: ($38.89) Breakeven Price to Cover Variable Costs FIXED COSTS $166.68 Quantity Depreciation Equipment Investment Total Fixed Costs Enterprise Total Units 1 $310.47 Units Head dollars $/Unit Planned Returns to Management, Risk, and Profit: Total $170.79 Enterprise Total $8.89 $18.63 $27.52 $2,844.29 $5,961.00 $8,805.29 $1,144.26 $366,164.60 ($66.40) Breakeven Price to Cover Total Costs ($12,443.31) CWT $8.89 6.00% Total Costs $344,916.00 $344,916.00 Enterprise Total ($21,248.60) CWT Example Break Even Sensitivity Purchase Analysis Weight (Lbs/Hd): 470 Net Pay Weight Sales Price/Cwt 165.00 Bid Price/Cwt 191.50 ADG (Lbs/day) with Shrink B/E Purchase Price ($/CWT) B/E Sales Price ($/CWT) 1.49 1.37 1.24 1.12 0.99 710 690 670 650 630 $191.06 $184.22 $177.37 $170.53 $163.68 $165.30 $170.09 $175.16 $180.55 $186.29 Developed by Blake Bennet, Associate Professor and Extension Economist, Texas A&M AgriLife Extension Service. Information presented is prepared solely as a general guide and not intended to recognize or predict the costs and returns from any one operation. Brand names are mentioned only as examples and imply no endorsement.