Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information rela

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Royal Lawncare Company Produces And Sells Two Packaged Products Weedban And Greengrow Revenue And Cost Information Rela 1 (32.98 KiB) Viewed 14 times

Royal Lawncare Company Produces And Sells Two Packaged Products Weedban And Greengrow Revenue And Cost Information Rela 2 (61.73 KiB) Viewed 14 times

Royal Lawncare Company Produces And Sells Two Packaged Products Weedban And Greengrow Revenue And Cost Information Rela 3 (10.31 KiB) Viewed 14 times

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow $ 9.00 $ 35.00 Selling price per unit Variable expenses per unit $ 2.90 $13.00 $ Traceable fixed expenses per year 138,000 $35,000 Last year the company produced and sold 43,000 units of Weedban and 20,500 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 Weedban Company Greengrow
Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Office Total Company Sales Chicago $ 160,500 48,150 30% 100% $ 100% 481,500 240,750 50% 240,750 50% Minneapolis $ 100% 321,000 192,600 60% Variable expenses Contribution margin 112,350 70 % Traceable fixed expenses 128,400 40% 51,360 16% 134,820 28% 83,460 52% Office segment margin 105,930 22% $ 28,890 18% $ 77,040 24% Common fixed expenses not traceable to offices 67,410 14% $ Net operating income 8% 38,520 Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis" sales by major market are: Dental Medical $ 214,000 100% Sales Variable expenses Minneapolis $ 321,000 100% 192,600 60% 128,400 40% $ 187,000 100% 55,640 52% 136,960 64% 77,040 36% Contribution margin 51,360 48% Traceable fixed expenses 35,310 11% 12,840 6% 22,470 21% S Office segment margin 93,090 29% $ 64,200 30% 27% 28,890 Common fixed expenses not traceable to offices 16,050 5 24 Net operating income $ 77,040 The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,350. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,800 or increase sales in the Dental market by $37,450. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profes Market
Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits < Required 1 Required 3