Wiikano Orchards Student Spreadsheet Supplement

Harvard Business School Brief Case 9-918-517

Courseware 9-918-519

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Created 3/1/2018
Exhibit 6
Apple Orchard Production Costs per Acre: Budget versus Actual, 2016

Budget ($) Actual ($)

Total Variable Costs $4,833.00 $4,658.38
Lime 13.00 11.23
Fertilizer 55.00 50.08
Herbicides 135.00 123.95
Fungicides 450.00 408.64
Insecticides 400.00 377.23
Labor—Maintenance 1000.00 970.65
Labor—Harvesting 1600.00 1510.00
Plant growth chemicals 40.00 30.46
Miscellaneous 150.00 148.40
Crop Insurance 350.00 387.12
Diesel Fuel 200.00 191.38
Equipment Repairs & Maintenance 300.00 309.71
Interest on Operating Capital 140.00 139.53

Fixed Costs $575.00 $570.22

Tractors 75.00 74.25
Equipment 300.00 295.97
Cost of Land 200.00 200.00

Total Specified Costs per Acre $5,408.00 $5,228.60

Costs Per
Number of Trees per Acre 908 818
Production Cost per Tree $5.96 $6.39
Exhibit 7
Income Statement Summary, 2016

FY 2016 ($)
Revenue $1,220,160
Apple Juice—Private Label (648,000 units @ $0.49 per unit) 317,520
Apple Juice—Company Label (1,512,000 units @ $0.52 per unit) 786,240
Direct-to-Consumer (Retail & Farmers’ Markets) 116,400
Costs $1,235,380
Apple Production (120 acres @ $5,228.60 per acre) 627,432
Apple Juice Production (2,160,000 units @ $0.18 per unit)* 388,800
Direct-to-Consumer (Retail & Farmers’ Markets) 75,480
Headquarter Operations 143,668
Profit (Loss) Before Taxes & Subsidies ($15,220)

*89% of the cost of producing apple juice was variable