2 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: 1.42 points Dirt Mountain Racing Total Bikes Bikes Bikes $924,000 $264,000 $ 402,000 $ 258,000 481,000 117,000 205,000 159,000 443,000 147,000 197,000 99,000 8 03:34:29 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 income (loss) Skipped 69,800 43,500 115,200 184,800 413, 300 $ 29, 700 8,800 40,800 20,200 20,400 7,300 15,800 40,800 38,400 36,000 52,800 80,400 51,600 122,800 166,900 123,600 24,200 $ 30,100 $(24,600) eBook *Allocated on the basis of sales dollars. Hint 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. Print a References Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and 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 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Ch 11 Graded Homework Saved 2 Net operating income (loss) $ 29,700 $ 24,200 $ 30,100 $(24,600) 1.42 points 03:05:59 "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 whet the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not we 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 profitability of the various product lines. Skipped eBook Complete this question by entering your ayswers in the tabs below. Hint Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Print Recured Required 2 > References Net operating income (loss) 125,00 $ 29,700 $ 24,200 $ 30,100 $124,600) 1.42 points "Allocated on the basis of sales dollars. 03:05:45 Skipped Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whethe the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear 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 lom profitability of the various product lines. eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Required 3 Print Should the production and sale of racing bikes be discontinued? OYes ONO References 2 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- profitability of the various product lines. 1.42 points 8 03:05:25 Complete this question by entering your answers in the tabs below. Skipped Required 1 Required 2 Required 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. eBook Totals Dirt Bikes Mountain Bikes Racing Bikes Hint 0 0 0 0 Contribution margin (loss) Traceable fixed expenses Print References 0 Total traceable fixed expenses Product line segment margin (loss) 0 0 $ 0 0 $ 0 $ 0 $ 0 Net operating income (loss) (Required 2 Mc Com