Royal Lawncare Company produces and sells two packaged products, Weedban and Gre
ID: 2513778 • Letter: R
Question
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Reven and cost information relating to the products follow: Product Weedban Greengrow S 11.00 S 31.00 $2.40 $ 15.00 Traceable fixed expenses per year 136,000 $37,000 Selling price per unit Variable expenses per unit Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 44,500 units of Weedban and 22,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Greengrow CompanyWeedbanExplanation / Answer
Particulars
1171500
[I.e 489500+682000]
489500
[I.e 44500 units×$11]
682000
[I.e 22000 units×$31]
(436800)
[ I.e 106800+33000]
(106800)
[I.e 44500 units×$2.4]
(330000)
[I.e 22000 units×$15]
(Less) common fixed expenses(5)
[In proportionate to sales value]
(43873.24)
[I.e 105000×489500/1171500]
(61126.76)
[I.e 105000×682000/1171500]
Particulars
total company($) weedban($) Greengrow($) Sales(1)1171500
[I.e 489500+682000]
489500
[I.e 44500 units×$11]
682000
[I.e 22000 units×$31]
(Less)Variable expenses(2)(436800)
[ I.e 106800+33000]
(106800)
[I.e 44500 units×$2.4]
(330000)
[I.e 22000 units×$15]
Contribution[(1)-(2)](3) 734700 382700 352000 (Less) Traceable fixed expenses(4) (173000) (136000) (37000)(Less) common fixed expenses(5)
[In proportionate to sales value]
(105000)(43873.24)
[I.e 105000×489500/1171500]
(61126.76)
[I.e 105000×682000/1171500]
Net income[(3)-((4)+(5))] 456700 202826.76 253873.24Related Questions
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