Question
Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price
Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products follow:
| Product | ||||
| Weedban | Greengrow | |||
| Selling price per unit | $ | 12.00 | $ | 36.00 |
| Variable expenses per unit | $ | 3.20 | $ | 15.00 |
| Traceable fixed expenses per year | $ | 137,000 | $ | 49,000 |
Last year the company produced and sold 41,500 units of Weedban and 18,500 units of Greengrow. Its annual common fixed expenses are $110,000.
Required:
Prepare a contribution format income statement segmented by product lines.
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Payroll Accounting 2016
Authors: Bernard J. Bieg, Judith Toland
26th edition
978-1305665910, 1305665910, 1337072648, 978-1337072649
