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 | $ | 10.00 | $ | 34.00 |
Variable expenses per unit | $ | 3.10 | $ | 10.00 |
Traceable fixed expenses per year | $ | 134,000 | $ | 33,000 |
Common fixed expenses in the company total $98,000 annually. Last year the company produced and sold 42,500 units of Weedban and 20,500 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
Co. Total Weedban Greengrow
Sales |
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Variable expenses |
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Contribution margin |
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Traceable fixed expenses |
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Product line segment margin |
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Common fixed expenses not traceable to products |
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Net operating income |
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