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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
$9.00
$31.00
Variable expenses per unit
$2.50
$10.00
Traceable fixed expenses per year
$128,000
$44,000
Common fixed expenses in the company total $97,000 annually. Last year the company produced and sold 35,500 units of Weedban and 21,500 units of Greengrow.
Required: Prepare a contribution format income statement segmented by product lines.
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