Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow.Revenue and cost information relating to the products follow:Selling price per unitVariable expenses per unitTraceable fixed expenses per yearProductWeedban$ 8.00Greengrow$ 39.00$ 3.10$ 130,000$ 14.00$ 39,000Last year the company produced and sold 37,500 units of Weedban and 16,500 units of Greengrow. Itsannual common fixed expenses are $105,000.Required:Prepare a contribution format income statement segmented by product lines.Product LineTotalCompanyWeedbanGreengrow0000$0$0$0 Royal Lawncare Company produces and sells two packaged products - Weedban and Greengrow. Revenue and cost information relating to the products follow: \table[[, Product], [, Weedban,Greengrow], [Selling price per unit,$8.00, $39.00

Income statement is a financial statement that shows profitability, total revenue and total…

Answered: Royal Lawncare Company produces and…

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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Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 B. Restorative $340,000; Power $169,125 C. Restorative $1,852,000; Power $817,500 D. Restorative $388,000; Power $231,125 E. Restorative $680,000; Power $494,500
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.
Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product 149V Product Z5OU Sales $ 40,000 $ 45,000 Variable expenses $ 12,800 $ 28,850 The fixed expenses of the entire company were $38,940. The break-even point for the entire company is closest to: Multiple Choice $76,353 $38,940 $80,590 $46,060
Clay Earth Company sells ceramic pottery at a wholesale price of $ 7.00 per unit. The variable cost of manufacturing is $1.75 per unit. The fixed costs are $5,500 per month. It sold 4, 700 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $(19,175) B. $(5,500) C. $19, 175 D. $27,400
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.13 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $805,272 per year. Administrative cost (all fixed) totals $614,367. Comer expects to sell 253,600 strings of light next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3 4. Conceptual Connection: Suppose Comer actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety.) IncreaseDecrease Please…
Star Company produces and sells two products, J and R. Revenue and cost information for the two products from last month is given below: selling price per unit variable costs per unit Product J $14.90 $ 5.30 Product R $15.80 $ 8.70 Each month Star Company has 60,000 direct labor hours available and 72,000 machine hours available. Product J requires 8 direct labor hours for each unit and 4 machine hours for each unit. Product R requires 6 direct labor hours for each unit and 9 machine hours for each unit. For the coming month, Star Company would like to use linear programming in order to maximize its monthly profits. Calculate the number of units of Product that should be produced in order to maximize net income.
Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60.Variable unit costs are as follows:Pecans $0.70Sugar 0.35Butter 1.85Other ingredients 0.34Box, packing material 0.76Selling commission 0.20Fixed overhead cost is $32,300 per year. Fixed selling and administrative costs are $12,500per year. Candyland sold 35,000 boxes last year.Required:1. What is the contribution margin per unit for a box of praline fudge? What is thecontribution margin ratio?2. How many boxes must be sold to break even? What is the break-even sales revenue?3. What was Candyland’s operating income last year?4. What was the margin of safety in sales dollars? 5. CONCEPTUAL CONNECTION Suppose that Candyland Inc. raises the price to $6.20 perbox but anticipates a sales drop to 31,500 boxes. What will be the new break-even point inunits? Should Candyland raise the price? Explain.
Answer all questions and properly
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The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
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 $ 12,00 $ 2.80 $ 129,000 Product Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Greengrow $.33.00 $12.00 $ 41,000 Last year the company produced and sold 41,000 units of Weedban and 22.500 units of Greengrow. Its annual common fixed expenses are $100,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company $ 5,289,500 $4,502,000 $ 607,500 3,270,000 143,500 270,000 2,019,500 4,448,500 427,500 2,019,500 $4,448,500 $ 427,500 $ 2,019,500
Shaw Company produces and sells two packaged products—Z-Bikes and y Bikes. Revenue and cost information relating to the products follow: Product Z Bikes Y Bikes Selling price per unit $ 175.00 $ 200.00 Variable expenses per unit $ 85.00 $ 105.00 Traceable fixed expenses per year $ 200,000 $ 75.00 Common fixed expenses in the company total $110 annually. Last year the company produced and sold 50,000 units of Z Bikes and 30,000 units of Y Bikes. Required: Prepare a contribution format income statement segmented by product lines.

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