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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: Selling price per unit
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Product Weedban $ 6.00 Greengrow $ 7.50 $ 2.40 $ 45,000 $ 5.25 $ 21,000 Traceable fixed expenses per year Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: Prepare a contribution format income statement segmented by product lines. Answer is complete but not entirely correct. Product Line Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Total Company Weedban Greengrow $ 90,000 $210,000 $ 300,000 36,000 x 147,000 x 183,000 54,000 63,000 117,000 45,000 x 21,000 66,000 x 9,000 $ 42,000 $ 51,000 (33,000) $ (24,000)
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