The study was initiated to determine how sheep ranches were physically and economically organized in 1964 and to select range and livestock management alternatives which would be profitable to sheep ranches. With data collected from the ranches three model ranches, representing the three most prominent strata, were constructed. These strata were determined by number of breeding ewes that were on the ranch and by the season of grazing on government land, i.e., winter, summer, or year around. After the building of these three ranches, each of them was linear programmed to find the profit maximizing combination of resources both before and following the addition of private and public capital. Capital was added in small increments, and the internal rate of return was calculated for each increment to determine the profitability of each investment. As an added tool, the capitalized value of the ranch resources was obtained showing the value of one more unit of each resource to the ranch concerned.