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	$	10.00	$	39.00
Variable expenses per unit	$	3.10	$	13.00
Traceable fixed expenses per year	$	129,000	$	48,000

Common fixed expenses in the company total $103,000 annually. Last year the company produced and sold 42,000 units of Weedban and 22,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.