Royal Lawncare Company produces and sells two packaged products-Weedban and Gree

Question

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 11.00 $33.00 $2.60 $ 13.00 137,00047,000 Common fixed expenses in the company total $99,000 annually. Last year the company produced and sold 40,500 units of Weedban and 24,000 units of Greengrow. Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow

Explanation / Answer

Contribution format income statement :

Total company Weedban Greengrow Sales 1237500 445500 792000 Variable expenses 417300 105300 312000 Contribution margin 820200 340200 480000 Traceable fixed expense 184000 137000 47000 Segment margin 636200 203200 433000 Common Fixed expense 99000 Net operating income 537200

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