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Although the cost of each gallon of ethanol produced in the MicroFueler depends on the price of sugar, electricity, and water, Thomas Quinn maintains that it can be made for somewhere around $1 per gallon. The company is trying to make inedible sugar available from Mexico, which can be bought for as little as 2.5 cents per pound.
Fuel consumption rates and the change infuel price can be used to update the custom rates to currentprices. For example, if the farm diesel price is $1.00 per gal-lon with a consumption rate of .80 gallons per acre, $.80would be allocated to the per acre custom rate.If farm dieselprices increased to $1.25 per gallon, the additional cost dueto the fuel increase would be $.25 * .80=$.20.or example, a farmer may findthat owning a combine saves him $500 per year over havinghis crop harvested by a custom operator. The farmers mayalso discover that by investing the $120,000 (cost of com-bine) in the production of more crops, he could earn $1,500extra income.