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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 Greengrow Selling price
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 36.00 Variable expenses per unit $ 3.20 $ 13.00 Traceable fixed expenses per year $ 133,000 $ 46,000 Last year the company produced and sold 35,500 units of Weedban and 24,500 units of Greengrow. Its annual common fixed expenses are $113,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Sales $ 0 0 0 Variable expenses O O 0 Contribution margin Traceable fixed expenses 0 Product line segment margin $ Common fixed expenses not traceable to products 0 Net operating income
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