... of bottles of wine decrease 5. The total wine yield can be calculated using the formula: (170*40) number of vines per hectare multiplied by the number of bottles of wine, and so the plantation would be yielded 170*40, which is 6800 bottles of wine. The annual fixed-costs of running the Chateau and vineyards amount to £ 560 per hectare. The cost of tending each vine is £4 per annum, thus 170vines per hectare cost would be 170*£4, which is £680 per hectare. Total fixed-cost will be £680+560=£1,240 A net income of 40% (£2.00) of the retail price will be received by Chateau Wick, thus revenue will be £2.00*6,800 total wine yield, which is £13,600. Gross profit will be revenue minus fixed-cost, which is £13,600-£1,1240=£12,360. 1.2.2 The Initial Recommendation It is recommended that the number of vines per hectare of 235 will yield the maximum profit. However, any number of vines per hectare within the range 220 ...

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