Notice that prices must be entered on a per pound basis. If by-product prices are quoted on a per cwt or per ton basis, the appropriate conversion must be made before entering a price. Also notice that it is not necessary to change the by-product names in every table. It is not a requirement that only by-products be entered in this section. For example, to define a preconditioning program, the price for a preconditioning feed could be entered in one of these spaces.
Blue fields contain formulas which calculate the indicated production and financial information.
Keep in mind that net revenue calculations depend to a very large degree upon the estimate of output price. This estimate will be much less reliable than the input price information, which will, for the most part, be known at the beginning of the backgrounding process. It may be useful, therefore, to use a range of possible output prices to determine a likely range of net revenue. This table displays three important break-even prices. First, a break-even selling price over all costs is calculated.