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	$	8.00	$	39.00
Variable expenses per unit	$	3.10	$	13.00
Traceable fixed expenses per year	$	132,000	$	39,000

Common fixed expenses in the company total $96,000 annually. Last year the company produced and sold 44,500 units of Weedban and 18,500 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

Common Tixea expenses in the company total p90,uuu annualiy. Last year the company produced and sold 44,500 units of Weedban and 18,500 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. 1.66 polnts Answer is complete but not entirely correct. Product Line Total Company $1,077,500 Weedban Greengrow $ 356,000 $ 721,500 Sales Variable expenses 378,450 137,950 240,500 Contribution margin 699,050 218,050 481,000 Traceable fixed expenses 171,000 132,000 39,000 $ 442,000 Product line segment margin Common fixed expenses not traceable to products Net operating income $ 86,050 528,050 357,050 $ 171,000