Exercise 6-4 (Static) Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost relating to the products follow: Product Selling price per unit Weedban $ 6.00 Greengrow $ 7.50 ok Variable expenses per unit Traceable fixed expenses per year $ 2.40 $ 45,000 $ 5.25 $ 21,000 nt nit Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual comme expenses are $33,000. ences Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow 0 0 0 0 $ 0 $ 0 Lynch Company manufactures and sells a single product. The following costs were incurred during the c operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $6 $9 $3 $ 4 $ 300,000 $ 190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the comp. unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year, 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year