PROFIT SENSITIVITY ANALYSIS IN AGRICULTURE BASED ON EFFECTS MEASUREMENT
The article addresses methodological issues aimed at estimating the sensitivity of profit under the influence of changes in yield per hectare and reduction of unit costs. As a result of the calculations, three areas of profit elasticity were delimited: moderate, increased, high. The area of moderate...
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| Format: | Article |
| Language: | English |
| Published: |
University of Agricultural Sciences and Veterinary Medicine, Bucharest
2021-01-01
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| Series: | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| Online Access: | https://managementjournal.usamv.ro/pdf/vol.21_4/Art67.pdf |
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| Summary: | The article addresses methodological issues aimed at estimating the sensitivity of profit under the influence of changes in yield per hectare and reduction of unit costs. As a result of the calculations, three areas of profit elasticity were delimited: moderate, increased, high. The area of moderate elasticity located in the range of yield of 30-31q/ha is characterized by the increase of yield by one quintal which ensures the highest increase of profit 6.44 lei per unit of product. In the areas of increased elasticity (40-41 q/ha) and high elasticity (50-51 q/ha) the increase of the corn yield contributes to the increase of the respective unit profit by 3.65 and 2.35 lei. The research allowed us to determine the minimum amount of profit. It was found out that in agricultural enterprises the actual amount of profit for wheat and corn is less than the minimum amount, which does not allow the achievement of simple reproduction. |
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| ISSN: | 2284-7995 2285-3952 |