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:

	Product
	Weedban		Greengrow
Selling price per unit	$	8.00	$	33.00
Variable expenses per unit	$	2.80	$	15.00
Traceable fixed expenses per year	$	131,000	$	47,000

Common fixed expenses in the company total $101,000 annually. Last year the company produced and sold 44,500 units of Weedban and 18,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.