To calculate the cost per egg:
\[ \text{CPE} = \frac{\text{TC}}{\text{E}} \]
Where:
Cost per egg is a metric used to describe the cost for a chicken to produce one egg. In other words, taking into account the cost of the hen itself, and the cost of feed, how much does each egg cost.
Let's assume the following values:
Using the formula:
\[ \text{CPE} = \frac{100}{500} = 0.20 \]
The Cost Per Egg is $0.20.
Let's assume the following values:
Using the formula:
\[ \text{CPE} = \frac{250}{1000} = 0.25 \]
The Cost Per Egg is $0.25.