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Chapter 13 Exercises Saved Help SO 1 Total $933,000 475,000 458.000 Dirt Biken $ 267,000 118.000 149,000 Bikes $ 409,000 203,000 206,000 Roy DU $ 257.000 154,000 103,000 1 points Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating incone (10) 70,400 44,100 114,500 186,600 415,600 542,400 3,800 21,000 40,800 53,400 124,000 5 25,000 41,000 3.900 38,500 81,800 169,200 5 36,000 20,600 15,200 35,200 51,400 122.400 $ 19,400) Skipood eBook Print References "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 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 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes