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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 $ 10.00 $ 32.00
Variable expenses per unit $ 2.40 $ 11.00
Traceable fixed expenses per year $ 138,000 $ 40,000

Common fixed expenses in the company total $110,000 annually. Last year the company produced and sold 44,500 units of Weedban and 22,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

Product Line
Total Company Weedban Greengrow
Sales
Variable Expenses
Contribuition Margin
Traceable Fixed expenses
Product line segment margin

Common fixed expenses not traceable to products

Net operating income

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