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 $ 10.00 $ 31.00 Variable expenses per unit $ 2.40 $ 10.00 Traceable fixed expenses per year $ 129,000 $ 36,000 Last year the company produced and sold 41,000 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $97,000. 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: Product Weedban Greengrow Selling price per unit $ 10.00 $ 31.00 Variable expenses per unit $ 2.40 $ 10.00 Traceable fixed expenses per year $ 129,000 $ 36,000 Last year the company produced and sold 41,000 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $97,000. 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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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 | $ | 10.00 | $ | 31.00 |
| Variable expenses per unit | $ | 2.40 | $ | 10.00 |
| Traceable fixed expenses per year | $ | 129,000 | $ | 36,000 |
Last year the company produced and sold 41,000 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $97,000.
Required:
Prepare a contribution format income statement segmented by product lines.
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