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 birt Mountain iacing Total Bikes Bikes 1922,000 $764,000 $426,000 $. 252,000 476.000 115,000 20.000 109,000 446,00 149.000 197,000 100.000 Sales Variable momfacturing and selline expenses Contribution martin fed expenses Advertise, traceable Depreciation of special equipment Salies of product line managers Allocated on fixed expenses Tutal en Netrating Income (1) 69,900 10,50 21,000 14,50 20,00 7.700 15,900 114,00 0,200 50, 500 16,200 184400 52,00 31,700 50.00 41100 1323 167200 1250 12.00 26,00 29,100 (23,00 Allocated on the basis of sales collars 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 facing bikes has no resale value and does not wear out Required: 1 What is the financial advantage (disadvantage) per quote of discontinuing the Racing Biker? 2. Should the production and sale of racing bikes be discontinued 2. Prepare a properly formatted segmented income statement that would be more useful to management intsessing the long run profitability of the various product lines. Complete this question by entering your answers in the tabs below. 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 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required: Required 2 > 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 1 Required 2 Required Should the production and sale of racing bikes be discontinued? Yes ONO 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 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 Totais Dirt Bike Mountain Bikes Rating Bikes 0 0 0 Contribution margin oss) Traceable foued expenses 0 D 0 0 $ 0 10 Total acable foxed expenses Product line segment margmoss) 0 S 0$ Next >