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 | $ 9.00 | $ 36.00 | |
| Variable expenses per unit | $ 3.20 | $ 12.00 | |
| Traceable fixed expenses per year | $ 129,000 | $ 49,000 | |
Last year the company produced and sold 42,500 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $115,000.
Required:
Prepare a contribution format income statement segmented by product lines.
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Cost Management Strategies For Business Decisions
Authors: Ronald Hilton, Michael Maher, Frank Selto
3rd Edition
0072830085, 978-0072830088
