AT&T; 13:35 1 * 100% ezto.mheducation.com Chapter 6 Homework Question 1 ot 4) 25

Question

AT&T; 13:35 1 * 100% ezto.mheducation.com Chapter 6 Homework Question 1 ot 4) 25.00 polints Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Seling price per unt Variable e Traceable foed expenses per year 5 9.00 32 00 240 1400 42,000 136,000 Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 39,500 units of Weedban and 17,500 units of Greengrow. Required Prepare a contribution format income statement segmented by product lines. Hints References Book & Resources

Explanation / Answer

Total Weedban Greengrow Sales 915500 355500 560000 Variable expenses 339800 94800 245000 Contribution margin 575700 260700 315000 Traceable fixed expenses 178000 136000 42000 Product line segment margin 397700 124700 273000 Common fixed expenses not traceable to products 105000 Net operating income 292700

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