Exercise 7-4 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:

ProductWeedbanGreengrowSelling price per unit$6.00$7.50Variable expenses per unit$2.40$5.25Traceable 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.