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 | $ 35.00 | |
| Variable expenses per unit | $ 2.40 | $ 15.00 | |
| Traceable fixed expenses per year | $ 134,000 | $ 41,000 | |
Last year the company produced and sold 39,500 units of Weedban and 18,000 units of Greengrow. Its annual common fixed expenses are $111,000.
Required:
Prepare a contribution format income statement segmented by product lines.
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
