Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow:

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	$	12.00	$	34.00
Variable expenses per unit	$	2.50	$	11.00
Traceable fixed expenses per year	$	133,000	$	43,000

Common fixed expenses in the company total $109,000 annually. Last year the company produced and sold 43,000 units of Weedban and 22,500 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

 

Explanation

Sales:

Weedban: 43,000 units × $12.00 per unit = $516,000.

Greengrow: 22,500 units × $34.00 per unit = $765,000.

 Variable expenses:

Weedban: 43,000 units × $2.50 per unit = $107,500.

Greengrow: 22,500 units × $11.00 per unit = $247,500.

Thanks