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 $100,000 annually. Last year the company produced and sold 40,000 units of Weedban and 24,500 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

Contribution Income statement by Product Line of Royal Lawncare Product Line Total Company Weedban Greengrow Sales Units            64,500           40,000             24,500 Selling price Per Unit                    9                    38 Total Sales       1,291,000         360,000           931,000 Less : Variable expenses Per Unit               2.30               11.00 Total Variabl Expenses          361,500           92,000           269,500 Contribution margin          929,500         268,000           661,500 Traceable fixed expenses          180,000         137,000             43,000 Product line segment margin          749,500         131,000           618,500 Common fixed expenses not traceable to products          100,000 Net operating income          649,500

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.