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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.

Product Line
Total Company Weedban Greengrow

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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