Exercise 6-4 (Algo) 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 $ 10.00 Greengrow $ 40.00 $ 3.20 $ 129,000 $ 12.00 $ 37,000 Last year the company produced and sold 44,500 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $102,000. Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses. Total Company $ 812,500 552,500 North $ 650,000 South $ 162,500 520,000 260,000 134,000 130,000 67,000 126,000 $ 63,000 54,000 $ 72,000 Net operating income Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. 32,500 130,000 67,000 $ 63,000 ok nt ences Problem 6-19 (Algo) Variable Costing Income Statement; Reconciliation [LO,6-1, LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@$62 per unit) Cost of goods sold (@ $40 per unit) Gross margin Selling and administrative expenses" Net operating income * $3 per unit variable: $252,000 fixed each year. Year 1 $ 1,116,000 720,000 396,000 306,000 $ 90,000 The company's $40 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($368,000 + 23,000 units) Absorption costing unit product cost Production and Year 2 $ 1,736,000 1,120,000 616,000 336,000 $ 280,000 $ 10 121 2 16 $ 40 The company's $40 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($368,000 + 23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 23,000 Year 2 23,000 18,000 28,000 $ 10 12 2 16 $ 40 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year