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Question 7 Northern Rivers Orchards Ltd grows avocadoes, macadamia nuts and mangoes...

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Accounting

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)

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