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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 8.00 $ 34.00 $ 2.80 $ 13.00 $ 136,000 $ 41,000 Common fixed expenses in the company total $107,000 annually. Last year the company produced and sold 35,500 units of Weedban and 17,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 825,000 495,000 330,000 156,000 174,000 69,000 $ 105,000 North $ 550,000 385,000 165,000 78,000 $ 87,000 South $ 275,000 110,000 165,000 78,000 $ 87,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year, the company had net operating income of $450,000 on sales of $1,300,000. The company's average operating assets for the year were $1,500,000 and its minimum required rate of return was 13%. Required: Compute the company's residual income for the year. Residual income
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