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Make a contribution format income statement segmented

    Assignment Instructions

    Assignment ID: FG132956767

    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                  $ 8.00            $ 39.00

    Variable expenses per unit           $ 3.20            $ 14.00

    Traceable fixed expenses per year    $ 136,000      $ 36,000

    Last year the company produced and sold 38,500 units of Weedban and 23,500 units of Greengrow. Its annual common fixed expenses are $108,000.

    Required:

    Problem 1: Prepare a contribution format income statement segmented by product lines.

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