Exercise 6-4 (Algo) Basic Segmented Income Statement [LO6-4]

Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products follow:

	Product
Weedban	Greengrow
Selling price per unit	$ 10.00	$ 30.00
Variable expenses per unit	$ 2.70	$ 13.00
Traceable fixed expenses per year	$ 134,000	$ 37,000

Last year the company produced and sold 41,500 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $96,000.

Required:

Prepare a contribution format income statement segmented by product lines.

\begin{tabular}{|c|c|c|c|} \hline & \multicolumn{3}{|c|}{ Product Line } \\ \hline & \begin{tabular}{c} Total \\ Company \end{tabular} & Weedban & Greengrow \\ \hline \multicolumn{4}{|l|}{ Sales } \\ \hline \multicolumn{4}{|l|}{ Variable expenses } \\ \hline Contribution margin & 0 & 0 & 0 \\ \hline \multicolumn{4}{|l|}{ Traceable fixed expenses } \\ \hline Product line segment margin & 0 & 0 & $ \\ \hline \multicolumn{4}{|l|}{ Common fixed expenses not traceable to products } \\ \hline Net operating income & $ & & \\ \hline \end{tabular}