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 $ 35.00 Variable expenses per unit $ 2.70 $ 12.00 Traceable fixed expenses per year $ 133,000 $ 34,000 Last year the company produced and sold 45,000 units of Weedban and 18,000 units of Greengrow. Its annual common fixed expenses are $100,000. 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 $ 35.00 Variable expenses per unit $ 2.70 $ 12.00 Traceable fixed expenses per year $ 133,000 $ 34,000 Last year the company produced and sold 45,000 units of Weedban and 18,000 units of Greengrow. Its annual common fixed expenses are $100,000. Required: Prepare a contribution format income statement segmented by product lines.
Chapter4: Preparing And Using Financial Statements
Section: Chapter Questions
Problem 16DQ
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Question
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 | $ 35.00 |
| Variable expenses per unit | $ 2.70 | $ 12.00 |
| Traceable fixed expenses per year | $ 133,000 | $ 34,000 |
Last year the company produced and sold 45,000 units of Weedban and 18,000 units of Greengrow. Its annual common fixed expenses are $100,000.
Required:
Prepare a contribution format income statement segmented by product lines.
Transcribed Image Text:Total
Company
Product Line
Weedban Greengrow
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