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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
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 | $ | 31.00 |
Variable expenses per unit | $ | 2.50 | $ | 10.00 |
Traceable fixed expenses per year | $ | 137,000 | $ | 40,000 |
Common fixed expenses in the company total $100,000 annually. Last year the company produced and sold 38,500 units of Weedban and 17,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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