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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: Product Weedban $ 8.00
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban $ 8.00 Selling price per unit Greengrow $34.00 $11.00 Variable expenses per unit $ 2.20 Traceable fixed expenses per year $ 129,000 $ 39,000 Last year the company produced and sold 39,500 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Weedban Total Company Greengrow Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income $ 0 0 $ 0 0 0 $ 0 0
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