Question

Exercise 6-4 Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: WeedbanG Selling price per unit Variable expenses per uni t Traceable fixed expenses per year reengrow $10. 00 39.00 $2. 4012.00 38, 000 134,000 Common fixed expenses in the company total $97,000 annually. Last year the company produced and sold 42,500 units of Weedban and 17,500 units of Greengrow Required: Prepare a contribution format income statement segmented by product lines. Product Line Total

Answer 1

solution: Weedban Greengrow 682500 210000 472500 38000 434500 Total Sales* Variable expenses* Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income 1107500 312000 795500 172000 623500 97000 526500 425000 102000 323000 134000 189000 *working: Sales Variable expenses Weedban Greengrow 42500*10 17500*39 42500*2.4 17500*12