Exercise 6-4 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:

	Product
	Weedban		Greengrow
Selling price per unit	$	11.00	$	34.00
Variable expenses per unit	$	2.30	$	12.00
Traceable fixed expenses per year	$	133,000	$	48,000

Common fixed expenses in the company total $106,000 annually. Last year the company produced and sold 42,000 units of Weedban and 24,500 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

	Product Line
	Total Company	Weedban	Greengrow
Sales
Variable expenses
Contribution margin	0	0	0
Traceable fixed expenses
Product line segment margin	0	$0	$0
Common fixed expenses not traceable to products
Net operating income	$0