1 & 3 requirments please

Ch 11 HW Saved Help Save & Exit Check my - Exercise 11-2 Dropping or Retaining a Segment (L011-2] pints The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: eBook Hint Files Dirt Mountain Racing Total Bikes Bikes Bikes Sales $926,000 $265,000 $410,000 $ 251, Variable manufacturing and 459,000 111,000 195,000 153,000 selling expenses Contribution margin 467,600 154,800 215,000 98, eee Fixed expenses : Advertising, traceable 68,900 8,200 40,100 20,680 Depreciation of special equipment 43,500 20,200 7,709 15,600 Salaries of product-line 115,100 40,600 38,100 36, 400 managers Allocated common 185,200 fixed expenses* 53,000 82, eee 50,200 Total fixed expenses 412,700 122,000 167,900 122, Bee Net operating income $ 54,300 $ 32,000 $ 47,100 $(24,820) (loss) Print eference "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required Required Required 2 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 1 Required 2 > Exercise 11-2 Dropping or Retaining a Segment (L011-2] points eBook Hint The Regal Cycle Company manufactures three types of bicycles-adirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Dirt Mountain Racing Total Bikes Bikes Bikes Sales $926,000 $265,000 $410,000 $ 251,000 Variable nanufacturing and 459,600 111,000 195,000 153,600 selling expenses Contribution margin 467,000 154,080 215,000 98,000 Fixed expenses: Advertising, traceable 68,900 8,200 40, 180 20,600 Depreciation of special equipment 43,500 20,200 7,780 15,600 Salaries of product-line 115, 100 40,600 38,100 36,488 managers Allocated common fixed expenses 185,200 53,000 82, eee 50,200 Total fixed expenses 412,780 122, eee 167,9ee 122,888 Net operating income $ 54,300 $ 32,600 $ 47,100 $(24,800) (loss) Files Print Reference "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 3. Prepare a property formatted segmented income statement that would be more useful to management in assessing the long run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required Required Required 2 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the longrun profitability of the various product lines. Mountain Totals Dirt Bikes Racing Bikes Bikes Contribution margin (los) Traceable fixed expenses Total traceable foxed expenses Product line segment margin (loss) Net operating income (loss)