Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4]Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost informationrelating to the products follow:Selling price per unitVariable expenses per unitTraceable fixed expenses per yearProductSalesVariable expensesWeedban$ 12.00$ 2.20$ 137,000Last year the company produced and sold 41,000 units of Weedban and 17,500 units of Greengrow. Its annual common fixed expensesare $104,000.Contribution marginTraceable fixed expensesProduct line segment marginCommon fixed expenses not traceable to productsNet operating incomeRequired:Prepare a contribution format income statement segmented by product lines.Greengrow$ 34.00$ 12.00$ 35,000$TotalCompanyPrev0Product Line0Weedban0 $1 of 2m0Greengrow0 $Next >00

Income statement :— It is one of the financial statements that shows profitability, total revenue…

Answered: Exercise 7-4 (Algo) Basic Segmented…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

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Problem 4MCQ

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Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Greengrow Weedban $ 10.00 $ 37.00 $ 2.70 $ 137,000 $ 13.00 $ 38,000 Last year the company produced and sold 43,500 units of Weedban and 22,500 units of Greengrow. Its annual common fixed expenses are $96,000. Required: Prepare a contribution format income statement segmented by product lines. Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Product Line Total Company Weedban Greengrow 0 0 0 0 $ 0 $ 0 $ 0
Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 11.00 $ 2.30 $ 135,000 Greengrow $30.00 $ 12.00 $ 38,000 Last year the company produced and sold 41,500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $112,000. $ Required: Prepare a contribution format income statement segmented by product lines. Total Company 0 0 0 Product Line Weedban $ 0 Greengrow 0 $ 0
Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 35.00 Variable expenses per unit $ 3.10 $ 11.00 Traceable fixed expenses per year $ 135,000 $ 48,000 Last year the company produced and sold 38,500 units of Weedban and 25,000 units of Greengrow. Its annual common fixed expenses are $103,000. Required: Prepare a contribution format income statement segmented by product lines.
Exercise 6-4 (Algo) 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 Selling price per unit Weedban $ 12.00 Greengrow $31.00 $ 13.00 Variable expenses per unit $ 2.90 Traceable fixed expenses per year $ 131,000 $ 38,000 Last year the company produced and sold 42,500 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $105,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Sales Variable expenses Contribution margin 0 Traceable fixed expenses Contribution margin 0 Common fixed expenses not traceable to products Net operating income $ 0 0 0 $ 0 0 $
d Income Statement Saved Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year 2$ 2$ $ 137,000 Greengrow 2$ $ 13.00 $ 32,000 9.00 37.00 3.00 Last year the company produced and sold 36,000 units of Weedban and 21,500 units of Greengrow. Its annual common fixed expenses are $112,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company 0. 2$ 2$ $4
Exercise 6-4 (Algo) 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. Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $9.00 $ 2.60 $ 129,000 Product Greengrow $38.00 $12.00 $50,000 Last year the company produced and sold 40,000 units of Weedban and 23,500 units of Greengrow. Its annual common fixed expenses are $112,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Exercise 6-4 (Algo) 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: Last year the company produced and sold 35,500 units of Weedban and 24,000 units of Greengrow. Its annual common fixed expenses are $109,000. Required: Prepare a contribution format income statement segmented by product lines.
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
Required information Exercise 5-8 (Static) Prepare a Cost-Volume-Profit (CVP) Graph [LO5-8] [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is $24 per unit and whose variable expense is $18 per unit. The company's monthly fixed expense is $24,000. Exercise 5-8 (Static) Part 1 Required: 1. Prepare a cost-volume-profit graph for the company using sales volumes of zero units and 8,000 units. Note: Use the line tool to draw three lines (Total Sales Revenue, Fixed Expense, Total Expense). Each line should only contain the two endpoints. For your graph to grade correctly, you must enter the exact coordinates. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line from the graph, click on the line and select delete option. $200,000 Dollars $150,000 $100,000 $50,000…
Problem 5A-7 (Algo) Cost Behavior; High-Low Method; Contribution Format Income Statement [LO5-10] Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow: Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 4,750 $ 546,250 327,750 218,500 31,800 35,500 81,000 6,550 18,000 172,850 $ 45,650 August 5,250 $603,750 362,250 241,500 31,800 38,100 87,300 6,550 18,000 181,750 $ 59,750 September 5,750 $ 661,250 396,750 264,500 31,800 40,700 93,600 6,550 18,000 190,650 $ 73,850 Required: 1. By analyzing data from the company's income statements, classify each of its expenses (including cost of goods sold) as either…
ouTube Maps er 1 i 05 K ces Mc Graw MU Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below. Costs Selling: Advertising Sales salaries and commissions. Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: 9°F ain showers Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Planos, Incorporated, sold and delivered 62 planos. Required 1 Required 2 Cost Formula Required: 1. Prepare a traditional format Income statement for August. 2. Prepare a contribution format Income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin. $933 per month $4,790…
Segment Reporting The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.

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