Malik Shawaiz 58473 Financial Management
RUKH Cattle Farm
With reference to above case. It is observed that Hassan is working on farm business of his
father and has an assets like Land and animals. The Land has occupied many acres so for this
labor is also required to manage the farm and also for the animals their feed and care required
a lot of attention. Feed of every animal is different from one another. So cost can vary from one
animal to another. So there is a concept of fixed and variable cost as well. Expense in farms for
health of animal is also key and it is different from every animal. Hassan was also reserved
about the profitability. As animal farming requires a lot of efforts and the feed that is provided
to animal is also need to be measure to get the profitability.
For selling of Animals they have to travel to several mandi’s. This includes transportation
charges Freight charges. These charges are also a part of selling. This also impact the profit
margin of Hassan farms. Animal farms are also been vaccinated regularly for the health of
animals. These expenses also be involved in the price of an animal. So there are fixed and
variable prices for every expense. To get the better profit all these expenses are needed to
maintained and then set the price of an animal.
Animals are sold to slaughters so Hassan should have that much animal in his farms that he can
sell to slaughters as there are not many slaughters available in Sadiqabad area so having more
animals there would not benefit until they can find any more slaughter house near Sadiqabad
or make a deal with nearby area.