Question
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
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 . . . . . . . . . . . . . . . . . . . . . . $6.00 $7.50 Variable expenses per unit . . . . . . . . . . . . . . . . . $2.40 $5.25 Traceable 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.
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