Exercise 6-4 Basic Segmented Income Statement [LO6-4]

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

	Product
	Weedban		Greengrow
Selling price per unit	$	9.00	$	34.00
Variable expenses per unit	$	2.40	$	13.00
Traceable fixed expenses per year	$	133,000	$	36,000

Common fixed expenses in the company total $102,000 annually. Last year the company produced and sold 43,000 units of Weedban and 22,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

	Total	Weedban	Greengrow
Sales
Variable Expenses
Contribution Margin
Contribution margin
Traceable fixed expenses
Product line segment margin
Common fixed expenses not traceable to products
Net operating income