Problem
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
|
$
|
9.00
|
$
|
31.00
|
|
Variable expenses per unit
|
$
|
2.30
|
$
|
12.00
|
|
Traceable fixed expenses per year
|
$
|
133,000
|
$
|
42,000
|
Common fixed expenses in the company total $104,000 annually. Last year the company produced and sold 42,500 units of Weedban and 23,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.