Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 10.00 $ 2.60 $ 131,000 Sales Selling expenses Product Last year the company produced and sold 38,000 units of Weedban and 19,500 units of Greengrow. Its annual common fixed expenses are $114,000. Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Greengrow $40.00 $11.00 $ 45,000 Required: Prepare a contribution format income statement segmented by product lines. Total Company $ 1,160,000 1,160,000 Product Line $ 1,160,000 Weedban $ 380,000 380,000 Greengrow $ 780,000 780,000 1,160,000 $ 380,000 $ 780,000
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 10.00 $ 2.60 $ 131,000 Sales Selling expenses Product Last year the company produced and sold 38,000 units of Weedban and 19,500 units of Greengrow. Its annual common fixed expenses are $114,000. Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Greengrow $40.00 $11.00 $ 45,000 Required: Prepare a contribution format income statement segmented by product lines. Total Company $ 1,160,000 1,160,000 Product Line $ 1,160,000 Weedban $ 380,000 380,000 Greengrow $ 780,000 780,000 1,160,000 $ 380,000 $ 780,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information
relating to the products follow:
Selling price per unit
Variable expenses per unit
Traceable fixed expenses per year
Weedban
$ 10.00
$ 2.60
$ 131,000
Sales
Selling expenses
Product
Last year the company produced and sold 38,000 units of Weedban and 19,500 units of Greengrow. Its annual common fixed
expenses are $114,000.
Contribution margin
Traceable fixed expenses
Product line segment margin
Common fixed expenses not traceable to products
Net operating income
Greengrow
$40.00
$11.00
$ 45,000
Required:
Prepare a contribution format income statement segmented by product lines.
Total
Company
$ 1,160,000
1,160,000
Product Line
$ 1,160,000
Weedban Greengrow
$ 380,000 $ 780,000
380,000
780,000
1,160,000 $ 380,000 $ 780,000
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