Answer:
563.4 cents
Explanation:
A margin call occurs when the margin of an investment falls bellow the maintenance margin.
In this problem, the production costs for 5,000 bushels are given by:
[tex]Margin = Price*units -Cost\\\$1,500=\$5.714*5000 - Cost\\Cost = \$27,070[/tex]
The price per bushel that yields a margin of $1,100 is:
[tex]\$1,100=Price*5,000- \$27,070\\Price =\$5.634=563.4\ cents[/tex]
You will receive a margin call at a price of 563.4 cents per bushel.
