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Please help me solve this accounting problem Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to
Please help me solve this accounting problem
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: |
Product | ||||
Weedban | Greengrow | |||
Selling price per unit | $ | 8.00 | $ | 30.00 |
Variable expenses per unit | $ | 2.50 | $ | 13.00 |
Traceable fixed expenses per year | $ | 136,000 | $ | 34,000 |
Common fixed expenses in the company total $113,000 annually. Last year the company produced and sold 36,500 units of Weedban and 19,500 units of Greengrow. |
Required: |
Prepare a contribution format income statement segmented by product lines. |
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