Royal Lawncare Company produces and sells two packagedproducts—Weedban and Greengrow. Revenue and cost informationrelating...Royal...

Free

50.1K

Verified Solution

Question

Accounting

Royal Lawncare Company produces and sells two packagedproducts—Weedban and Greengrow. Revenue and cost informationrelating to the products follow:

Product

WeedbanGreengrow
Selling price per unit$10.00$32.00
Variable expenses per unit$2.30$13.00
Traceable fixed expenses per year$130,000$48,000

Common fixed expenses in the company total $113,000 annually.Last year the company produced and sold 39,000 units of Weedban and22,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented byproduct lines.


Product Line Total Company Weedban Greengrow

Sales $1,094,000 $390,000 $704,000

Variable expenses 375,70089 ________________ 286000

Traceable fixed income _____________ ____________________________

Contribution margin 718,300 300, 300    418,000

Traceable fixed expenses _______________________________________ ______________

7Product line segment margin7 718,300 $300,300 $418,000

Common fixed expenses not traceable to products__________________ ____________________ ______________

Net operating income $718,300 _______________________________________

Answer & Explanation Solved by verified expert
3.9 Ratings (767 Votes)

total Weedban Greengrow
company
Sales          1,094,000         390,000         704,000
less variable cost             375,700            89,700         286,000
contribution margin             718,300         300,300         418,000
Traceable fixed expense             178,000         130,000            48,000
segment margin             540,300         170,300         370,000
common fixed cost             113,000
net income (loss)             427,300

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingRoyal Lawncare Company produces and sells two packagedproducts—Weedban and Greengrow. Revenue and cost informationrelating...Royal Lawncare Company produces and sells two packagedproducts—Weedban and Greengrow. Revenue and cost informationrelating to the products follow:ProductWeedbanGreengrowSelling price per unit$10.00$32.00Variable expenses per unit$2.30$13.00Traceable fixed expenses per year$130,000$48,000Common fixed expenses in the company total $113,000 annually.Last year the company produced and sold 39,000 units of Weedban and22,000 units of Greengrow.Required:Prepare a contribution format income statement segmented byproduct lines.Product Line Total Company Weedban GreengrowSales $1,094,000 $390,000 $704,000Variable expenses 375,70089 ________________ 286000Traceable fixed income _____________ ____________________________Contribution margin 718,300 300, 300    418,000Traceable fixed expenses _______________________________________ ______________7Product line segment margin7 718,300 $300,300 $418,000Common fixed expenses not traceable to products__________________ ____________________ ______________Net operating income $718,300 _______________________________________

Other questions asked by students