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 $ 6.00 $ 7.50 Variable expenses per unit $ 2.40 $ 5.25 Traceable fixed expenses per year $ 45,000 $ 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: Product Weedban Greengrow Selling price per unit $ 6.00 $ 7.50 Variable expenses per unit $ 2.40 $ 5.25 Traceable fixed expenses per year $ 45,000 $ 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
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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 | $ 6.00 | $ 7.50 |
| Variable expenses per unit | $ 2.40 | $ 5.25 |
| Traceable fixed expenses per year | $ 45,000 | $ 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.
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