BUSINESS PHASES 



43 



COST PRICE OF VARIOUS GRADES OF FEEDING 

 CATTLE IN RELATION TO PROFITS 



In determining what quality of cattle will be most 

 profitable to feed, there is one consideration not gener- 

 ally understood. A brief statement of the principle 

 involved is likely to be questioned. The principle re- 

 ferred to is as follows: The lower the price at which 

 feeding cattle are purchased, whether because of pre- 

 vailing low prices for feeders, or because of the low 

 grade of the cattle, the larger must be the margin be- 

 tween the buying and selling price in order to secure 

 protection against loss. As suggested, this principle 

 applies not only to the purchase of feeders of various 

 market grades at prices differing materially, but to the 

 purchase of feeders of the same grade at different prices. 



The following table shows to what extent this 

 principle operates : 



