Exercise 7-4 Basic Segmented Income Statement [LO7-4]

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	$	11.00	$	31.00
Variable expenses per unit	$	2.80	$	15.00
Traceable fixed expenses per year	$	132,000	$	40,000

Common fixed expenses in the company total $100,000 annually. Last year the company produced and sold 40,000 units of Weedban and 23,500 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.