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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.
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