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Question #1 (covered in Ch 12) Royal Garden Tools produces and sells two products. Following is...

Question #1 (covered in Ch 12)

Royal Garden Tools produces and sells two products. Following is the revenue and cost information for the company’s two products.

Deluxe Grass Trimmer

Super Leaf Blower

Selling Price per Unit

$ 60.00

$ 75.00

Variable Expenses per Unit

$ 24.00

$ 55.00

Traceable Fixed Costs per year

$ 350,000

$ 210,000

Last year the company sold 15,000 Grass Trimmers and 25,000 Leaf Blowers. Royal’s Net Income for the year totaled $ 350,000.

Prepare a contribution format income statement (similar to Exhibit 12-4 on page 571 of the text) for Royal and its two segments. Include the contribution margin and segment margins. Calculate and include Royal’s total common fixed costs.

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