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The Regal Cycle Company manufactures three types of bicycles a dirt bike, o mountain bike, and a racing bike Dota on sales and expenses for the post quarter follow: Allocated on the bosis of sales dollars: Manogement is concerned about the continued losses shown by the rocing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce rocing bikes has no resale volue and does not wear out. Required: 1. What is the financial odvantage (disadvantoge) per quarter of discontinuing the Rocing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepore a properly formatted segmented income stotement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering vour answers in the tabs below. What is the finandal advantage (disadvantage) per quarter of discontinting the Racing Bikes? "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 n 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. Should the production and sale of racing bikes be discontinued? Manegement is concerned about the continued losses shown by the rocing bikes ond 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 recing bikes be discontinued? 3. Prepare a properly formatred segmented income stotement that would be more useful to management in ossessing the long-run profitabitity of the various product tines. Complete this question by entering vour answers in the tabs below. Prepare a properfy formatted segmented incorne statement that would be more useful to management in assessing the iong-run profitability of the various product lines
