Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban GreengrowSelling price per unit . . . . . . . . . . . . . . . . . . . . . . . $6.00 $7.50Variable expenses per unit . . . . . . . . . . . . . . . . . . $2.40 $5.25Traceable fixed expenses per year . . . . . . . . . . . . $45,000 $21,000 Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow.Required:Prepare a contribution format income statement segmented by product lines.
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 . . . . . . . . . . . . . . . . . . . . . . . $6.00 $7.50
Variable expenses per unit . . . . . . . . . . . . . . . . . . $2.40 $5.25
Traceable fixed expenses per year . . . . . . . . . . . . $45,000 $21,000
Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
