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Title: The Wheeler Wheat Farm has a long-term lease on 5,000 acres of land in South Dakota. The annual lease payment is $250,00

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Q:

The Wheeler Wheat Farm has a long-term lease on 5,000 acres of land in South Dakota. The annual lease payment is $250,000. Prior to planting in the spring of 2001, the Wheeler Farm economist predicted that the Farm would have $135,000 dollars left after paying all of its costs except the annual lease payment. In this case, the Wheeler Wheat Farm should

           a.   continue to operate because total revenue exceeds total cost.

           b.   continue to operate even though it predicts an accounting loss of $115,000.

           c.    shut down and experience an accounting loss of $135,000.

           d.   exit the market and experience an accounting loss of $250,000.


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Title: The Wheeler Wheat Farm has a long-term lease on 5,000 acres of land in South Dakota. The annual lease payment is $250,00

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    • Posted Date: Apr 28, 2012 at 9:19:36 PM

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A:
...sp;        a.   continue to operate because total revenue exceeds tota...
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