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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 Traceable fixed expenses per year Product Weedban $ 8.00 Greengrow $ 30.00 $ 2.60 $ 12.00 $ 37,000 $ 135,000 Last year the company produced and sold 41,000 units of Weedban and 22,000 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income $ Product Line Total Company Weedban 0 $ 0
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