Exercise 6-4 Basic Segmented Income Statement [LO6-4] Royal Lawncare Company pro
ID: 2542126 • Letter: E
Question
Exercise 6-4 Basic Segmented Income Statement [LO6-4]
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:
Product
Common fixed expenses in the company total $97,000 annually. Last year the company produced and sold 43,000 units of Weedban and 19,500 units of Greengrow.
Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:
Explanation / Answer
Calculation of Contribution for each product
particulars weedban greengrow TOTAL
sale value 473000 643500 1116500
less: variable cost 124700 234000 358700
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contribution 348300 409500 757800
less: fixed cost 132000 31000 163000
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profit befor common FC 216300 378500 594800
less : common fixed cost 97000
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profit after common fixed cost 497800
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