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Only Fresh Pty Ltd is a grower and wholesaler of fresh fruit. They are contemplating which one of the following alternative fruits to grow and

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Only Fresh Pty Ltd is a grower and wholesaler of fresh fruit. They are contemplating which one of the following alternative fruits to grow and add to their product range:

Blueberries

Raspberries

Year 0: Research and feasibility studies

$35,000

$65,000

Land preparation and establishment costs until harvest (per hectare)

$91,000

$128,500

Expected sales quantities (per hectare, per year)

9,800

trays

8,100

trays

Selling price per unit (per tray)

$32

$36

Variable costs (per tray)

$24

$30

Farm size

3

hectares

3

hectares

Years to grow

4

years

2

years

Years of harvest

6

years

8

years

All produce is sold during the harvest years. Blueberries cannot be harvested until year 4, whereas, Raspberries can be harvested from year 2 onwards.

What would be the difference in profit between the two fruits over the life of the produce? (Ignore the time value of money and any GST implications).

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