Royal Lawncare Company produces and sells two packaged produ

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 $33.00 $2.60 $ 13.00 137,00047,000 Common fixed expenses in the company total $99,000 annually. Last year the company produced and sold 40,500 units of Weedban and 24,000 units of Greengrow. Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow

Solution

Contribution format income statement :

	Total company	Weedban	Greengrow
Sales	1237500	445500	792000
Variable expenses	417300	105300	312000
Contribution margin	820200	340200	480000
Traceable fixed expense	184000	137000	47000
Segment margin	636200	203200	433000
Common Fixed expense	99000
Net operating income	537200