Question

A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes of apples, which he can sell at $40 per box.  However, he thinks that his crop will increase by 120 boxes of apples for each week he delays picking, but that the price will drop at a rate of $1.85 per box per week; in addition, he estimates that approximately 20 boxes per week will spoil for each week he delays picking.

1. When should he pick his crop to obtain largest total cash return? How much will he receive for his crop at that time?
2. Build an Excel Spreadsheet to calculate the profit for 0, 1, 2…, 6 weeks of delay picking?

Answer 1

Spread sheet:

Weeks(A)	No of Boxes (B)	No of Spoil Box (C)	Cash Return
0	1000	0	40000
1	1120	20	41965
2	1240	40	43560
3	1360	60	44785
4	1480	80	45640
5	1600	100	46125
6	1720	120	46240
7	1840	140	45985
8	1960	160	45360
9	2080	180	44365

formula used in last column =((B-C)*(40-(A*1.85)))