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 | $ | 10.00 | $ | 33.00 |
| Variable expenses per unit | $ | 2.70 | $ | 12.00 |
| Traceable fixed expenses per year | $ | 138,000 | $ | 41,000 |
Common fixed expenses in the company total $99,000 annually. Last year the company produced and sold 38,000 units of Weedban and 19,500 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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 | $ | 10.00 | $ | 33.00 |
| Variable expenses per unit | $ | 2.70 | $ | 12.00 |
| Traceable fixed expenses per year | $ | 138,000 | $ | 41,000 |
Common fixed expenses in the company total $99,000 annually. Last year the company produced and sold 38,000 units of Weedban and 19,500 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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