Question

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 6.00 $ 7.50 2.40 $ 5.25 $ 45,00 $ 21,800 Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line We Weedban Greengrow

Answer 1

	Product Line
	Total Company	Weedban	Greengrow
Revenue	$         300,000	$ 90,000	$ 210,000
Less: Variable expenses	$         183,000	$ 36,000	$ 147,000
Contribution	$         117,000	$ 54,000	$    63,000
Less: Traceable fixed expenses	$            66,000	$ 45,000	$    21,000
Profit before allocated expenses	$            51,000	$    9,000	$    42,000
Allocation of common fixed expenses	$            33,000	$ 11,512	$    21,488
Net Profit (Loss)	$            18,000	$ -2,512	$    20,512

Here is the formula version