I don’t know how to handle this Applied Mathematics question and need guidance.
Develop all appropriate horse cost sheets for each of the businesses below. Estimate the “Startup Cost” and daily & monthly cost for each type of horse. Be sure to make a separate chart for each. What recommendations would you make to each business to save money?
All businesses have identical 10 stall barns and facility layouts unless noted otherwise.
All feed 25 pounds of hay and 5 pounds of grain per day.
All horses are shoed every 5 weeks for $200.00 per horse.
Spring and winter vaccinations cost $125.00 for each.
Annual dental cost $75.00 per horse.
Shaving cost: $5.00 per bag or $4.50 per truckload of 1,000 bags
Hay cost: $9.00 per 50-pound bale or $200.00 per ton (12 tons per truckload)
Labor is $13.50 per hour for hired employees
Business 1: Ted has 4 lesson horses and 6 borders. He cleans his stalls by himself 5 days a week and hires an outside worker to clean them 2 days per week. It takes the worker 2 hours to clean the stalls. Stalls start with 3 bags of shavings and get a bag added each day. It cost him $450.00 per month to have the manure taken off the property. He must buy shavings and hay each week.
Business 2: Jed has 4 lesson horses and 6 borders. He cleans his stalls by himself 5 days a week and hires an outside worker to clean them 2 days per week. It takes the worker 2 hours to clean the stalls. Stalls start with 8 bags of shavings and stalls get a new bag every other day. He uses a composting system that cost $15,000 to install and requires 1 additional hour of paid labor per week to utilize. He has a storage barn