Question

Royal lawncare company produces and sells two packaged products

Answer 1

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 $ 36.00 Variable expenses per unit $ 3.00 $ 14.00 Traceable fixed expenses per year $ 136.000 $ 31.000 Common fixed expenses in the company total $96.000 annually. Last year the company produced and sold 37.000 units of Weedban and 15.500 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income