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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 Weedban $10.00 Product Greengrow $38.00

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 Weedban $10.00 Product Greengrow $38.00

FINANCIAL ACCOUNTING
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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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 $ 134,000 Product Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Last year the company produced and sold 39,500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $98,000. Greengrow $38.00 $12.00 $ 48,000 Required: Prepare a contribution format income statement segmented by product lines. Total Company $ 0 Product Line 0 0 > Weedban $395,000 126,400 268,600 Greengrow $ 268,600 $ 0 0
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 $ 3.20 $ 134,000 Product Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Last year the company produced and sold 39,500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $98,000. Greengrow $38.00 $12.00 $ 48,000 Required: Prepare a contribution format income statement segmented by product lines. Total Company $ 0 Product Line 0 0 > Weedban $395,000 126,400 268,600 Greengrow $ 268,600 $ 0 0
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825, 000 $ 550,000 $ 275,000 Variable expenses 495,000 385, 000 110,000 Contribution margin 330, 000 165,000 165,000 Traceable fixed expenses 144,000 72,000 72,000 Segment margin 186,000 $ 93,000 $ 93,000 Common fixed expenses 64,000 Net operating income $ 122,000 Required: 1. Compute the companywide break - even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break- even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) Royal Lawncare Company produces and sells two packaged products - Weedban and Greengrow. Revenue and cost information relating to the products follow: Last year the company produced and sold 39, 500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
Transcribed Image Text:Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825, 000 $ 550,000 $ 275,000 Variable expenses 495,000 385, 000 110,000 Contribution margin 330, 000 165,000 165,000 Traceable fixed expenses 144,000 72,000 72,000 Segment margin 186,000 $ 93,000 $ 93,000 Common fixed expenses 64,000 Net operating income $ 122,000 Required: 1. Compute the companywide break - even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break- even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) Royal Lawncare Company produces and sells two packaged products - Weedban and Greengrow. Revenue and cost information relating to the products follow: Last year the company produced and sold 39, 500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
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