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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 $ 11.00 Greengrow $ 37.00 $ 2.30 $132,000 $ 10.00 $ 34,000 Last year the company produced and sold 44,000 units of Weedban and 20,000 units of Greengrow. Its annual common fixed expenses are $106,000. Required: Prepare a contribution format income statement segmented by product lines. Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Product Line Total Company Weedban Greengrow 0 0 0 0 $ 0 $ 0 Common fixed expenses not traceable to products Net operating income $ 0
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