Royal Lawncare Company produces and sells two packaged products, Weedban and Gre

Question

Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:

  

Product

  

Common fixed expenses in the company total $99,000 annually. Last year the company produced and sold 40,500 units of Weedban and 17,500 units of Greengrow.

  

Prepare a contribution format income statement segmented by product lines.

Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:

Explanation / Answer

INCOME STATEMENT OF WEEDBAN

INCOME STATEMENT OF GREENGROW

SALES (40500 * $9) $364500 LESS VARIABLE COST (40500 * $2.20) (89100) CONTRIBUTION MARGIN 275400 LESS TRACEBLE FIXED EXPENSES (130000) NET OPERATING INCOME $145400

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