Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow.: Product Selling price per unit Variable expensen per unit Traceable fixed expenses per year Weedban $ 10.00 $2.70 $ 129,000 Greengrow $ 40.00 $ 11.00 $ 45,000 Last year the company produced and sold 37,500 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow.: Product Selling price per unit Variable expensen per unit Traceable fixed expenses per year Weedban $ 10.00 $2.70 $ 129,000 Greengrow $ 40.00 $ 11.00 $ 45,000 Last year the company produced and sold 37,500 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income

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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Denger
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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 Weedban $ 10.00 $ 3.20 $ 136,000 Product Greengrow $ 38.00 $ 13.00 $ 46,000 Last year the company produced and sold 41,000 units of Weedban and 15,500 units of Greengrow. Its annual common fixed expenses are $103,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company $ Product Line 0 0 Weedban 0 $ 0 Greengrow 0 $ 0 0
Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.