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 $9.00 $ 2.60 $ 129,000 Product Greengrow $ 38.00 $ 12.00 $ 50,000 Last year the company produced and sold 40,000 units of Weedban and 23,500 units of Greengrow. Its annual common fixed expenses are $112,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow

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 $9.00 $ 2.60 $ 129,000 Product Greengrow $ 38.00 $ 12.00 $ 50,000 Last year the company produced and sold 40,000 units of Weedban and 23,500 units of Greengrow. Its annual common fixed expenses are $112,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Exercise 6-4 (Algo) Basic Segmented Income Statement [LO6-4]
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
$9.00
$ 2.60
$ 129,000
Product
Greengrow
$38.00
$12.00
$50,000
Last year the company produced and sold 40,000 units of Weedban and 23,500 units of Greengrow. Its annual common fixed
expenses are $112,000.
Required:
Prepare a contribution format income statement segmented by product lines.
Total
Company
Product Line
Weedban
Greengrow

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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 Product Weedban $ 9.00 $ 2.50 $ 135,000 Greengrow $33.00 $ 13.00 $ 49,000 Last year the company produced and sold 36,500 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
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 $9.00 $ 2.60 $ 137,000 Product Greengrow $36.00 $ 10.00 $ 38,000 Last year the company produced and sold 36,500 units of Weedban and 17,500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow