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In 2016, the owner of a cow-calf operation must decide what the appropriate weight for cows in their herd is. For decades, the national trend has been for cow weights to increase because they produce larger calves, but evidence indicates that cow weights may have reached the point where the cost of maintaining a larger cow has become greater than the return from producing a larger calf. Analyzing this issue introduces marginal principles from economics. Formerly Old Mule Farms, product no. 9B10B004.

In 2016, the owner of a cow-calf operation must decide what the appropriate weight for cows in their herd is. For decades, the national trend has been for cow weights to increase because they produce larger calves, but evidence indicates that cow weights may have reached the point where the cost of maintaining a larger cow has become greater than the return from producing a larger calf. Analyzing this issue introduces marginal principles from economics. Formerly "Old Mule Farms," product no. 9B10B004.

The operator of a dairy farm in Tennessee has begun renting goats for landscaping (see Goats: The Green Alternative (A) 9B11B018). The business proved successful so he considered expanding the operation (see Goats: The Green Alternative (B) 9B11B025). Now, he consults with a statistician to learn how to incorporate uncertainty into the decision about expanding. The case incorporates three types of uncertainty into a spreadsheet analysis of the expansion decision and then uses Monte Carlo analysis to produce an array of outcomes from the capital budgeting process.

The operator of a dairy farm in Tennessee has begun renting goats for landscaping (see Goats: The Green Alternative (A)). The business proved successful so he considered expanding the operation (see Goats: The Green Alternative (B)). Now, he consults with a statistician to learn how to incorporate uncertainty into the decision about expanding. The case incorporates three types of uncertainty into a spreadsheet analysis of the expansion decision and then uses Monte Carlo analysis to produce an array of outcomes from the capital budgeting process.

This case is a supplement to Goats: The Green Alternative (A). The (B) case can be used independently of the (A) case if the professor wishes to focus exclusively on capital budgeting. See also Goats: The Green Alternative (C) 9B15D001.

The owner of a goat herd had successfully rented a portion of his herd to clear land at a nearby resort. The resort land clearing job generated a small profit and now the owner is evaluating the prospects of bidding on similar land clearing projects in the area. The owner believes that profitability for this line of business is constrained by the size of the truck and trailer used to transport the goats to the job site. He reasons that a larger truck and trailer would allow him to transport more goats to the job site each day, generating incremental revenues. He also realizes that a larger truck and trailer would result in increased operating costs. The owner determines the investment needed to upgrade the truck and trailer. He must then determine if incremental revenues and costs associated with the larger truck and trailer would justify the initial investment. This case provides a realistic analysis of incremental revenues and costs in the context of capital budgeting. The (B) case can be used independently of the (A) case if the professor wishes to focus exclusively on capital budgeting.

Spreadsheet for instructor for product 8B11B018.

The owner of a goat herd in Tennessee must decide whether to rent out his herd for a land-clearing project at a nearby resort. Goats are better suited to clearing the land than humans and machines, but the owner has never rented out his goats for such a purpose. The owner must identify costs associated with the project, then determine a price to charge for the service. Since the owner has no prior experience renting out livestock, he must come up with estimates of the incremental costs associated with the rental operation and prepare a bid with little knowledge of rates charged by competitors for goat rentals. This case provides a realistic example of the thought processes that business owners go through when evaluating whether to expand into complementary lines of business, as well as the considerations of entrepreneurs contemplating starting new businesses. See also Goats: The Green Alternative (B) 9B11B025 and Goats: The Green Alternative (C) 9B15D001.

The owner of a goat herd in Tennessee must decide whether to rent out his herd for a land-clearing project at a nearby resort. Goats are better suited to clearing the land than humans and machines, but the owner has never rented out his goats for such a purpose. The owner must identify costs associated with the project, then determine a price to charge for the service. Since the owner has no prior experience renting out livestock, he must come up with estimates of the incremental costs associated with the rental operation and prepare a bid with little knowledge of rates charged by competitors for goat rentals. This case provides a realistic example of the thought processes that business owners go through when evaluating whether to expand into complementary lines of business, as well as the considerations of entrepreneurs contemplating starting new businesses. See also Goats: The Green Alternative (B) and Goats: The Green Alternative (C).