Royal Lawncare Company produces and sells two packaged products. Weedban and and

Question

Royal Lawncare Company produces and sells two packaged products. Weedban and and cost information relating to the products follow Greengr ow. Revenue $6.00 7.50 $2.40 S 5.25 45,000 $ 21.000 Selling price per unit Variable expenses per unit Traceable fixed expenses per year 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. Product Line Total Weedban Greengrow

Explanation / Answer

Prepare contribution margin income statement :

Total company Weedban Green grow Sales 300000 90000 210000 Variable cost 183000 36000 147000 contribution margin 117000 54000 63000 Traceable fixed expense 66000 45000 21000 Segment margin 51000 9000 42000 Common fixed expense 33000 Net operating income 18000

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