The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived. Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high. The transportation cost was $6 per bale and a packing and loading cost of $1 was typical. The landed cost of a bale of hay this winter was:
A)$4.
B)$6.
C)$10.
D)$11.

Question

Quizplus · Accepted Answer

The landed cost includes the purchase price, transportation cost, and packing/loading cost: $4 + $6 + $1 = $11 per bale.

The Drought of 2011 Devastated Hay Crops in the Plains