Exercise 54 Basic Segmented Income Statement LO54 Royal Lawn

Exercise 5-4 Basic Segmented Income Statement [LO5-4) Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost infomation relating to the products folow Selling price per un Vaiabe expenss per unit Traceable foxed expenses per year 1000 33.00 $ 2.80$12.00 137,000 $ 50.000 Common xed expenses in the company total $1134,000 annualy Last year the company produced and sold 38.500 unts of Weedban and 16,000 units of Greengrow Prepare a contribution format income statement segmeted by product lines caps lock control option command commandoption

Solution

Contribution Margin Income Statement Total Weedban Greengrow Sales revenue 923000 395000 528000 Less: Variable cost 302600 110600 192000 Contribution margin 620400 284400 336000 Less: Traceable Fixed cost 187000 137000 50000 Ssegment contribution 433400 147400 286000 Less: Common Fixed cost 113000 Net income 320400