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 $ 12.00 $ 33.00 $ 2.90 $ 11.00 $135,000 $46,000 Common fixed expenses in the company total $109,000 annually. Last year the company produced and sold 44,500 units of Weedban and 19,500 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow 0 0 $ 0 $

Answer 1

Answer
Statementshowing Computations
Paticulars	Total Company	Weedban	Greengrow
Sales	$        1,177,500	$        534,000	$            643,500
Less Variable Expenses	$           343,550	$        129,050	$            214,500
Contribution Margin	$           833,950	$        404,950	$            429,000
Less Traceable Fixed Expenses	-$          181,000	-$        135,000	-$              46,000
Segment Margin	$           652,950	$        269,950	$            383,000
Less Common Fixed expenses	-$          109,000
Net operating income	$           543,950