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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 Variable
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 Greengrow $ 11.00 $ 35.00 $ 2.40 $ 13.00 $ 137,000 $ 37,000 Common fixed expenses in the company total $106,000 annually. Last year the company produced and sold 45,000 units of Weedban and 23,500 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637,500 300,000 146,000 154,000 64,000 $ 90,000 North $ 750,000 600,000 150,000 73,000 $ 77,000 South $ 187,500 37.500 150,000 73,000 $ 77,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region 3. Compute the break-even point in dollar sales for the South region (For all requirements, round your Intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar) 1. Dollar sales for company to break-even 2 Dollar sales for North segment to break even 3. Dollar sales for South segment to break even
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