BRIEF EXERCISE 10–1 Basic Segmented Income Statement [LO1]

Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:

Product Weedban Greengrow Selling price per unit ................................................ $6.00 $7.50 Variable expenses per unit ...................................... $2.40 $5.25 Traceable fixed expenses per year ......................... $45,000 $21,000 Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.