Example 1: Determining the market value for each cow Milko owns dairy cattle. The market value of the cattle is calculated by reference to the litres of milk able to be produced & the lactation rate of the cows. The cattle are regularly sold at auction. Costs incurred to transport the cattle to auction are $500 per truck. Each truck can transport approximately 100 cattle. Number of mature cows held at 30 lune 500 20 13 Average litres of production per cow 6000 litres Lactation rate 5 0% Price per litre 40 cents
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