Question:
In Napa Valley, California, 1 acre of good wine land can produce some 3.5 tons of high-quality grapes. When the average price is $3,414 for premium cabernet per ton, what would be the amount of money that could be generated on 1 acre of premium cabernet farming?
A
$11,949
Explaination
To find the dollar amount of grape revenue for one acre, multiply the price per ton of grapes by the number of tons of grapes that can be grown on one acre.
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Therefore, the dollars generated on one acre of premium cabernet are about $11, 949.
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