Cost Analysis of Vegetable Growing
Hi, I'm Jackie Jackson, and I'm going to talk to you about cost analysis of vegetable growing. And vegetable growing like with many businesses there are two types of cost. There are fixed cost and there are variable costs. Variable costs are costs that are going to fluctuate based on different situations that may arise during your business activities. Fixed cost are going to remain constant. For example if you purchase land. You are probably going to have a fixed payment that you need to make on that land or on the lease. Variable costs may include your cost of labor. Or they may include unexpected costs for example costs associated with having to tend with issues that arise with weather fluctuations. You are also going to need to look at the price of your inputs such as seeds. You are going to look at the cost of your equipment that you need to raise the vegetables. These are going to be a one time upfront fixed cost. And then you are going to need to look at costs such as overhead and administrative, the labor involved in bringing the vegetables to market. And these again are going to be a form of variable cost.