Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4]

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	$ 10.00	$ 35.00
Variable expenses per unit	$ 2.70	$ 13.00
Traceable fixed expenses per year	$ 129,000	$ 38,000

Last year the company produced and sold 44,500 units of Weedban and 18,000 units of Greengrow. Its annual common fixed expenses are $102,000.

Required:

Prepare a contribution format income statement segmented by product lines.

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