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 $6.00 $2.40 $ 45,000 Product Greengrow $ 7.50 $5.25 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: 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: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $6.00 $2.40 $ 45,000 Product Greengrow $ 7.50 $5.25 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: Prepare a contribution format income statement segmented by product lines.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 6-4 (Static) 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
$6.00
$2.40
$ 45,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Product line segment margin
Common fixed expenses not traceable to products
Product
Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed
expenses are $33,000.
Greengrow
$ 7.50
$5.25
$ 21,000
Required:
Prepare a contribution format income statement segmented by product lines.
$
Total
Company
0
0
0
Product Line
Weedban
$
0
0
Greengrow
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30a985e5-59b0-4412-942a-6d815ee32496%2F7fb76a9f-68b6-4302-a683-701bc08feb5d%2F12ihceu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-4 (Static) 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
$6.00
$2.40
$ 45,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Product line segment margin
Common fixed expenses not traceable to products
Product
Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed
expenses are $33,000.
Greengrow
$ 7.50
$5.25
$ 21,000
Required:
Prepare a contribution format income statement segmented by product lines.
$
Total
Company
0
0
0
Product Line
Weedban
$
0
0
Greengrow
$
0
0
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