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Answer

Contribution Income Statement

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1.       Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Product WeedbanGreengrow Selling price per unit . . . . . . . . . . . . . . . . . . . . . . $ 6.00 $ 7.50 Variable expenses per unit . . . . . . . . . . . . . . . . . $ 2.40 $ 5.25 Traceable fixed expenses per year . . . . . . . . . . . $ 45,000 $ 21,000 Common fixed expenses in the company total $ 33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines.