Question - Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:
|
|
Product
|
|
|
Weedban
|
Greengrow
|
|
Selling price per unit
|
$9.00
|
$31.00
|
|
Variable expenses per unit
|
$2.50
|
$10.00
|
|
Traceable fixed expenses per year
|
$128,000
|
$44,000
|
Common fixed expenses in the company total $97,000 annually. Last year the company produced and sold 35,500 units of Weedban and 21,500 units of Greengrow.
Required: Prepare a contribution format income statement segmented by product lines.