Question: Marlin Enterprises Ltd. Select financial data For the year ended September 30, 2021 Marlin Enterprises Ltd is a grower and distributer of frozen field strawberries


Marlin Enterprises Ltd. Select financial data For the year ended September 30, 2021 Marlin Enterprises Ltd is a grower and distributer of frozen field strawberries in Thunder Bay. It's operations consist of a parcel of land to grow organic strawberries and a garage on the property to clean and freeze the product. The income statement for the last three fiscal years is presented below. 2021 2020 2019 Yield of strawberries grown, delivered, and sold per year (in kg's) 34,400.00 36,200.00 24,000.00 Revenue $ 141,040.00 $144,438.00 $ 90,960.00 Less: Bags Delivery service to local vendors Depreciation of the garage Electricity Property taxes Seeds Tractor costs Wages - Production Total expenses 4,300.00 4,525.00 7,052.00 7,221.90 500.00 500.00 2,488.00 2,524.00 848.72 824.00 1,000.00 1,000.00 5,000.00 5,000.00 49,364.00 50,553.30 $ 70,552.72 $ 72,148.20 $ 3,000.00 4,548.00 500.00 2,280.00 800.00 1,000.00 5,000.00 31,836.00 48,964.00 Net income (loss) for the year $ 70,487.28 $ 72,289.80 $ 41,996.00 Notes: 1) Strawberries are sold in 2kg bags. 2) Marlin Enterprises Ltd does not deliver their own strawberries. Rather, they pay a deliver service a percentage of their sales. 3) The garage is being depreciated using the straight line basis. 4) Electricity is required to freeze the strawberries. The cost is equal to $150 per month plus $0.02 per kg of strawberries frozen. 5) Property taxes increase at the rate of 3% per year. 6) The same amount of strawberry seeds are purchased each year. The yield is dominated by the growing conditions. 7) Tractor costs include fuel, maintenance, insurance, depreciation, etc.. These costs do not fluctuate with sales or yield. 8) Production employees are paid a rate of 35% of revenue. 1) Prepare a contribution margin income statement in good form for the year ended September 30, 2021 (Feel free to add rows and modify column width as you see fit) 17,200.00 kg, what would the net income (loss) be? 2) Assuming the total yield and sales in fiscal 2022 is going to be: (Show all of your calculations) 3) What is the break even point in unit sales rounded to the nearest kilogram? (Show all of your calculations) 4) Compute the margin of safety and describe what this number means (Show all of your calculations) 54,300.00 kg of strawberries sold? 5) What is the degree of operating leverage at (Show all of your calculations)
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