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	$	6.00	$	7.50
Variable expenses per unit	$	2.40	$	5.25
Traceable fixed expenses per year	$	45,000	$	21,000

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.

Answer 1

Answer 2

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.00 $7.50 Variable expenses per unit . . . . . . . . . . . . . . . . . . . . . . . $2.40 $5.25 Traceable fixed expenses per year . . . . . . . . . . . . . . . . . $45,000 $21,000 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.