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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 | $ | 8.00 | $ | 33.00 |
Variable expenses per unit | $ | 2.50 | $ | 12.00 |
Traceable fixed expenses per year | $ | 137,000 | $ | 38,000 |
Common fixed expenses in the company total $98,000 annually. Last year the company produced and sold 42,500 units of Weedban and 23,500 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
|
Options for blanks:
- Administrative expenses
- Advertising
- Beginning merchandise inventory
- Commissions
- Common fixed expenses not traceable to products
- Depreciation
- Direct labor
- Direct materials
- Ending merchandise inventory
- Indirect labor
- Indirect materials
- Manufacturing overhead
- Purchases
- Sales
- Selling expenses
- Traceable fixed expenses
- Variable expenses
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