Calculate number of farmers "close" to make a profit

najon

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Dec 4, 2014
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I have a math question that I am struggling with:


Background: In my model, I have 50 farmers who plant and sell cotton. Each farmer while running their farm have costs (operations, debt, labor etc...​) and they generate revenues from selling cotton. All farmers have different land size, therefore the amount of cotton harvested and sold is different for all.

Profitable farmers are considered to be the ones with: revenues (sales) - costs >0
​NON-Profitable farmers are considered to be the ones with: ​revenues (sales) - costs <=0


question:

​Now, I want to calculate the number of non-profitable farmers who are "close" to make a profit.Let say, I have 30 profitable farmers and 20 non-profitable farmers. Among the 20 non-profitable farmers, how many are "close" to make profit.by close, I mean, how many of them make only a 10% (or less) loss?

​for example, if farmer A profit calculation is: 500-550 = -$50
then, he's an non-profitable farmer. he's missing $50 to reach the breakeven point. how do I calculate the percentage of his loss? is he within 10% or less to reach breakeven?

thanks for your help



 
Let costs be C (the $550 in your example) and Income be I (the $500 in your example). Profit (loss) is stated as a percentage of costs, so
Profit Percent = 100 * (I - C) / C
If Profit Percent is negative, the 'Profit' is actually a loss. So, for your example your percentage profit is -9.1% or a loss of 9.1%.
 
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