Simple Business Accounting - And Finally...
The table below shows the final position of Fruit28 after the end of the school year - a total of 36 weeks - with some of the figures for the year averaged out.
Time to find out how we have performed over the full year - was it worth it? Do you have cause for celebration? Copyright: Nicholas Kmoch, from stock.xchng.
The maintenance cost for the shed rose to £8 halfway through the year and the rise in petrol prices meant your uncle had to increase his delivery charges as a result. Assume that the price for each piece of fruit averages out as shown below.
| Item | Cost | Sales per week (average) |
|---|---|---|
| Maintenance | £8 per week | |
| Lab coats | £15 each | |
| Display boxes | £2 each | |
| Money box | £10 | |
| Delivery fees | £5 per day | |
Fruit:
|
|
|
Average price of fruit over the 36 weeks:
- Apples: 22p each
- Oranges: 18p each
- Bananas: 16p each
- Grapes: 65p per bunch
- Strawberries: £1.10 per punnet
- Pears: 25p each.
Task
Use the new information above to complete the following:
- A profit and loss account for the trading period
- The mark up for each piece of fruit
- The gross profit margin
- The net profit margin
- The ROCE
Write a short 200-word report summarising the performance of the business over the year, referring to appropriate accounting ratios to support your comments.