6A. Village Farms is a North American green-house producer of tomatoes. VFF operates four greenhouses: three in Texas and one in British Columbia. The combined area under cultivation is 220 acres. Last year, VFF harvested 115 million pounds of tomatoes for a yield of 522,727 pounds per acre. VFF sold its output at an average price of$1.1647per pound for total revenues of$133.9million. At the end of last year, Mexico and the U.S. signed "The Suspension Agreement" under which Mexican field tomatoes can no longer be sold in the US as 'greenhouse' tomatoes. This is expected to increase greenhouse tomato prices by25%in the coming year. At the end of last year, VFF completed an upgrade to its greenhouse technology, which will increase yields to750,000lbs/acre. What will sales revenues be over the coming year?

6A. Village Farms is a North American green-house producer of tomatoes. VFF operates four greenhouses: three in Texas and one in British Columbia. The combined area under cultivation is 220 acres. Last year, VFF harvested 115 million pounds of tomatoes for a yield of 522,727 pounds per acre. VFF sold its output at an average price of$1.1647per pound for total revenues of$133.9million. At the end of last year, Mexico and the U.S. signed "The Suspension Agreement" under which Mexican field tomatoes can no longer be sold in the US as 'greenhouse' tomatoes. This is expected to increase greenhouse tomato prices by25%in the coming year. At the end of last year, VFF completed an upgrade to its greenhouse technology, which will increase yields to750,000lbs/acre. What will sales revenues be over the coming year?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 48E

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