Answer:
Contribution is sales revenue less variable cost. In multiple products environment, it is important that the producer have information about the performance of each product. This is useful for decision making purpose. See income statement below
Explanation:
An income statement showing contribution would suffice:
        Royal Lawrence Company
                                                                   Income statement 
                                                       Weedban	Greengrow	Total 
                                                                     $                   $                   $
Sales (sp/unit × unit)                            315,000   900,000         1,215,000 
Variable cost	(Vc/unit × units)              (<u>98,000)</u>      (<u>325,000)</u>  (<u>423,000)</u>
Contribution                                           217,000      575,000   792,000 
Specific fixed cost                              <u>  (132,000)</u>   <u> (37,000)	</u> <u>(169,000)</u>
Product profit                                   85,000     538,000   623,000 
Common Fixed cost                                                     <u>(100,000)</u>
Total profit                                                                     <u>523,000 </u>