Question
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 | $ | 11.00 | $ | 30.00 |
| Variable expenses per unit | $ | 3.10 | $ | 13.00 |
| Traceable fixed expenses per year | $ | 135,000 | $ | 45,000 |
Common fixed expenses in the company total $110,000 annually. Last year the company produced and sold 39,500 units of Weedban and 18,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
