Prepare a contribution format income statement for royal

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Reference no: EM131972149

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.

Reference no: EM131972149

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