Problem
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 $ 11.00 $ 40.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year $ 136,000 $ 37,000 Common fixed expenses in the company total $97,000 annually. Last year the company produced and sold 36,000 units of Weedban and 24,000 units of Greengrow.
Required: Prepare a contribution format income statement segmented by product lines.