What calculation should always be used when comparing the cost of assorted chicks versus direct hatchery orders?
Answer
Total cost based on the guaranteed number of the desired breed received
When evaluating the true financial viability of different purchasing methods, relying solely on the initial sticker price of an assortment is misleading. If a buyer must purchase five assorted chicks from a feed store merely to obtain one desired Wyandotte, the effective cost per guaranteed Wyandotte bird is inflated significantly compared to ordering a precise quantity directly from a hatchery that guarantees breed purity. Therefore, the analysis must focus on the total expenditure divided by the confirmed number of the specific breed that the buyer successfully acquires.
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