Things You'll Need
- Fixed costs
- Number of head
- Facility days in use
- Capacity of facility
- Calculator
Instructions
Write down your fixed costs: building depreciation, employee salary, maintenance, bedding, fuel, equipment, marketing, administrative fees and taxes.
Add the fixed costs together.
Calculate feedlot use by multiplying the feedlot capacity by 365 days.
For example: 25,000 head x 365 days = 9,125,000 head days. If the feedlot is only 50 percent utilized, multiply .50 x 25,000 x 365 = 4,562,500 head days.
Divide your overhead costs by head/days. If your overhead cost is $3,850,125, for example: $3,850,125/9,125,000 = .42. Yardage costs per head will be 42 cents.