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: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 11.00 $ 38.ee $ 2.70 $ 14.ee $ 137,000 $ 32.000 Common fixed expenses in the company total $103,000 annually. Last year the company produced and sold 44,000 units of Weedban and 21,500 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines.

Answer 1

	Total	Weedban	Greengrow
Sales	$1,301,000	$484,000	$817,000
Variable cost	$419,800	$118,800	$301,000
Contribution margin	$881,200	$365,200	$516,000
Traceable fixed cost	$169,000	$137,000	$32,000
Segment margin	$712,200	$228,200	$484,000
Common fixed expense	$103,000
Net operating income	$609,200