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Royal Lawncare Income Statement by Product: Weedban and Greengrow

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Royal Lawncare Company produces Weedban and Greengrow, selling 44,000 units of Weedban and 21,500 units of Greengrow last year. With annual fixed costs of $103,000, a contribution format income statement should be prepared segmented by each product line to determine the contribution of Weedban and Greengrow to covering fixed costs and producing profit.

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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Last year the company produced and sold 44,000 units of Weedban and 21,500 units of Greengrow. Its annual commo fixed expenses are $103,000. Required: Prepare a contribution format income statement segmented by product lines.

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Royal Lawncare Income Statement by Product: Weedban and Greengrow

  • 1. Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Last year the company produced and sold 44,000 units of Weedban and 21,500 units of Greengrow. Its annual commo fixed expenses are $103,000. Required: Prepare a contribution format income statement segmented by product lines.