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 | $ | 39.00 |
| Variable expenses per unit | $ | 2.30 | $ | 14.00 |
| Traceable fixed expenses per year | $ | 137,000 | $ | 46,000 |
Last year the company produced and sold 38,000 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $108,000.
Required:
Prepare a contribution format income statement segmented by product lines.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
