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In a one-hectare land planted to rice, it is planned that gabi be the second crop to be planted instead of rice again. A one-hectare rice land can produce 70 cavans (3360 kilos) sold at P4.50/kilo for a total sale of P15,120 in the second cropping. The output needed P5,700 total expenses, giving a net return of P9,420. Gabi, on the other hand, planted to the one-hectare land with a population density of 10,000 hills will cost P9,875 (seedlings at P0.50 per piece, land preparation requires five man-animal days or P375, labor for planting is P0.25 per hill or P2,500, and harvesting at P0.20 per hill or P2,000). After four months, gabi can be sold to wholesalers at a rate of P2.50 per hill or P5,000 per hectare.
Solve using the formula for computing for the profitability of a partial farm.
Formula: (added returns+reduced cost) - (added cost+reduced returns)
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