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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.

Four teenage girls lying on the grass

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.

ItemCostSales per week (average)
Maintenance£8 per week 
Lab coats£15 each 
Display boxes£2 each 
Money box£10 
Delivery fees£5 per day 
Fruit:
  • Apples (each)
  • Oranges (each)
  • Bananas (each)
  • Grapes (per bunch)
  • Strawberries (per punnet)
  • Pears (each)
  
  • 17p
  • 16p
  • 15p
  • 58p
  • 90p
  • 26p
  
  • 52
  • 45
  • 80
  • 25
  • 30
  • 31

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.

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