Question: Exercise 6-4 Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the
Exercise 6-4 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 | $ | 9.00 | $ | 32.00 |
| Variable expenses per unit | $ | 2.80 | $ | 13.00 |
| Traceable fixed expenses per year | $ | 132,000 | $ | 39,000 |
Common fixed expenses in the company total $102,000 annually. Last year the company produced and sold 40,500 units of Weedban and 20,000 units of Greengrow.
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