Figure 1.
Income Ovr Feed Cost Per Cow vs. Milk Per Cow
7.00 
6.00 
- 500
0
4.00
40 This graph shows the high correlation
tMbettween the two variables (R2=.887). As
3.00 nilk p, lucioi i pw v ,i it-s.n, Gi
Margin also Increases. If you see two ta farms that have about the same milk
2.00
margin, that farm must have lower feed cost per cwt. of milk.
1.00 = 0.0808x 1.4949 R2 = 0.8871
0.00
40 50 60 70 80 90 100
Milk Per Cow, lb
Figure 2.
Income Over Feed Cost Per Cow vs. Feed Cost Per Cwt of Milk
7.00
6.00  4
V 5.00
0
4.00
_ __3.00_ This graph shows that as feed costs per
3.00 hundred weight increase, income over
0 feed costs per cow decreases. However,
there is some variation. If you look at two 2.00 farms that have about the same feed cost
=4-.2902x+ 11.015 per cwt. of m ilk, but one has a greater
R2 = 0.6684 gross margin, that farm is getting the
1.00 better return on their feed dollars.
0.00
4.30 4.80 5.30
Feed Cost Per Cwt of milk, $
7