Royal Lawncare Company produces and sells two packaged products, Weedban and Gre
ID: 2404246 • Letter: R
Question
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Weedban Greengrow $8.00 35.00 $ 2.30 $12.00 Traceable fixed expenses per year 138,000 $41,000 Selling price per unit Variable expenses per unit Common fixed expenses in the company total $106,000 annually. Last year the company produced and sold 44,000 units of Weedban and 18,000 units of Greengrow. Required Product Line Total Company Weedban GreengrowExplanation / Answer
Contribution Format Income Statement Segmented by Product Lines
Product Line
TOTAL COMPANY
WEEDBAN(fig in $)
GREENGROW(Fig in $)
Sales
352000 $
(8*44000)
630000 $
(35*18000)
Less: Variable Cost
101200 $
(2.3*44000)
216000 $
(12*18000)
CONTRIBUTION
664800 $
250800 $
414000 $
Less: Traceable Fixed Costs
-179000 $
-138000 $
-41000 $
Net Contribution
485800 $
112800 $
373000 $
Less: Common Fixed Expenses
-106000 $
Profit
379800 $
Product Line
TOTAL COMPANY
WEEDBAN(fig in $)
GREENGROW(Fig in $)
Sales
352000 $
(8*44000)
630000 $
(35*18000)
Less: Variable Cost
101200 $
(2.3*44000)
216000 $
(12*18000)
CONTRIBUTION
664800 $
250800 $
414000 $
Less: Traceable Fixed Costs
-179000 $
-138000 $
-41000 $
Net Contribution
485800 $
112800 $
373000 $
Less: Common Fixed Expenses
-106000 $
Profit
379800 $
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