If the ownership costs can be controlled, the farm can be profitable. But since the banana farm typically is small to begin with and since the gross margin is fairly small, we can expect profitability to be relatively sensitive to the size of the operation. Table 4 summa rizes the ownership costs in the same"costs per pound" terms in which the operating costs were expressed.costs. The total pre-harvest growing costs amount to about 11 1/2¢ lIb., almost a third of the 38.1¢ received for the pound of bananas. Harvesting, packing and shipping costs add almost 15¢ /lb. more, for a total of a little over 26¢ per pound, about two-thirds of the amount received per pound of bananas. The gross margin is almost 12¢ /lb., about one third of what was received for the bananas. This amount is what remains to pay the ownership costs.
If the ownership costs can be controlled, the farm can be profitable. But since the banana farm typically is small to begin with and since the gross margin is fairly small, we can expect profitability to be relatively sensitive to the size of the operation. Table 4 summa rizes the ownership costs in the same"costs per pound" terms in which the operating costs were expressed.costs. The total pre-harvest growing costs amount to about 11 1/2¢ lIb., almost a third of the 38.1¢ received for the pound of bananas. Harvesting, packing and shipping costs add almost 15¢ /lb. more, for a total of a little over 26¢ per pound, about two-thirds of the amount received per pound of bananas. The gross margin is almost 12¢ /lb., about one third of what was received for the bananas. This amount is what remains to pay the ownership costs.
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