Royal Lawncare Company produces and sells two packaged products, Weedban and Gre
ID: 2393303 • Letter: R
Question
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:
Product
Common fixed expenses in the company total $113,000 annually. Last year the company produced and sold 40,500 units of Weedban and 23,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
Product
Weedban Greengrow Selling price per unit $ 11.00 $ 36.00 Variable expenses per unit $ 3.00 $ 14.00 Traceable fixed expenses per year $ 135,000 $ 49,000Explanation / Answer
Segmented Income Statement Total Weedban Greengrow Sales units 40500 23000 Selling price per unit 11 36 Variable cost perr unit 3 14 Sales revenue (Sales units*Selling price) 1273500 445500 828000 Less: Variable cost (Units *Variable cost) 443500 121500 322000 Contribution margin 830000 324000 506000 Less: Traceable fixed cost 184000 135000 49000 Segmented income margin 646000 189000 457000 Less: Common Fixed cost 113000 Net operating income 533000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.