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WEEK 2 DISCUSSION

WEEK 2 DISCUSSION

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Break-Even Analysis

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Break-Even Analysis

The article obtained after search illustrates the economic value of soybeans. In the article, it is stated that the economic value of soybeans depends on the quality and yield. Therefore, it is important to point that break even is the point where the revenue generated is equal to the cost. It is mostly referred to as the point where the business does not incur either loses or profits. However, in the article, it is pointed out that soybeans have forty lines of maturity CITATION Sto18 \l 1033 (Stobaugh, Pengyin, & Luciano, 2018). Therefore, the article analyzes this maturity lines based on the plantation based in Arkansas. It is stated that for the maturity to be determined, the protein, yield, and oil were checked and then compared with the average total value of each line.

The article indicates that six profitable lines were registered as $8.40 to $54.96 per metric ton, which is based on the yield. However, it is pointed out that for a high profit to be realized high protein lines needed to be yield. It is, therefore, evident that high oil lines are having competitive protein, yield and oil content and they are very competitive without adding any premium CITATION Rob14 \l 1033 (Holland, 2014). In this case study, the break-even is used to describe the point of high protein and profitable of the soybeans CITATION Sto18 \l 1033 (Stobaugh, Pengyin, & Luciano, 2018). The article, therefore, means that soybeans, which has high protein and yield are more profitable compared to low yield and less protein content. Based on the article, the study was conducted to compare the average yield or protein of each field of soybeans to determine the economic value of the products. The product with lower yield and protein, therefore, has low value in the market and therefore, has less economic value.

References

BIBLIOGRAPHY Holland, R. (2014). Break-Even Analysis. Agricultural Extension Services, 2-34.

Stobaugh, B., Pengyin, C., & Luciano, J. (2018). Field evaluation and break-even analysis of specialty soybeans for biodiesel and meal protein production. Journal of Crop Improvement, 32 (1), 2-25.

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