Question: 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
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 | $ | 10.00 | $ | 39.00 |
| Variable expenses per unit | $ | 3.10 | $ | 13.00 |
| Traceable fixed expenses per year | $ | 129,000 | $ | 48,000 |
Common fixed expenses in the company total $103,000 annually. Last year the company produced and sold 42,000 units of Weedban and 22,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
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