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Wilma and Betty are starting a cow-calf enterprise under an operating agreement. Wilma owns all the land, buildings and fences as well as the livestock. Betty will provide the labor, the machinery and equipment needed, and all variable costs other than pasture maintenance. Wilma owns 300 acres of pasture which could be rented (opportunity cost) for $80 per acre. The livestock facilities (building, fences) have a value of $50,000. She says that annual costs for depreciation, interest, and repairs on these facilities would be 15% of this value. Pasture maintenance costs $100 per acre. The breeding herd is valued at $150,000. Interest on the herd should be calculated at 5%. Betty will provide 1500 hours of labor valued at $10.00 per hour. Variable costs of the enterprise will cost her $60,000. Machinery used in the enterprise is valued at $100,000 and annual fixed cost for the machinery would be 15% of this value. Develop a budget that shows the value of each person's contributions and the percent of the total that each one of them contributes. This can be used as a guide for dividing the revenue that they generate from their customers. For the percent, use 1 decimal point accuracy and express as a percent not a decimal. Betty's Contribution Wilma's Contribution Resource Land charge Livestock facilities charge Interest on herd Machinery charge Pasture maintenance All other variable costs Labor Total Percent (XX.X%)

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