Item 1

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	$	9.00	$	40.00
Variable expenses per unit	$	2.30	$	14.00
Traceable fixed expenses per year	$	135,000	$	48,000

Last year the company produced and sold 43,000 units of Weedban and 22,000 units of Greengrow. Its annual common fixed expenses are $107,000.

Required:

Prepare a contribution format income statement segmented by product lines.