Question 7
Northern Rivers Orchards Ltd grows avocadoes, macadamia nuts and mangoes for the commercial wholesale markets.
Unit sales, price and cost data for the last year were as follows:
Avocadoes Macadamias Mangoes
Sales Volume 40,000 trays 160,000 kg 40,000 trays
Average Price $30/tray $10/kg $10/tray
Variable Costs $10/tray $2/kg $5/tray
Fixed Costs $40,000 $100,000 $20,000
a) If corporate expenses of $160,000 are allocated across the three product divisions based on sales revenue, prepare a divisional performance report across the three product divisions. (6 marks)
