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 | $ | 11.00 | $ | 39.00 |
| Variable expenses per unit | $ | 2.40 | $ | 14.00 |
| Traceable fixed expenses per year | $ | 129,000 | $ | 39,000 |
Common fixed expenses in the company total $111,000 annually. Last year the company produced and sold 39,000 units of Weedban and 17,500 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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Financial Accounting An Introduction
Authors: Jacqui Kew, Alex Watson
4th Edition
0199046484, 978-0199046485
