Question

a soybean producer decides to store his soybeans in the local elevator for 6 months. the price at harvest is $5.50 per bushel and the elevator charges 2 cents per bushel per month for storage plus 5 cents per bushel handling charge. he has 4,000 bushels to sell and must borrow money at 8% annual interest while he stores the soybeans. what price must he receive for his soybeans to break even and cover his storage and opportunity costs?

please help!!! I have no idea how to start word problems :( (also please explain how to do it!)

Answer 1

here is your answer hope it's help ful