3 requirments

Mountain Total Sales Dirt Bikes Bikes Racing Bikes $ 300,000 Variable manufacturing and selling expenses $ 90,000 $ 150,000 $ 60,000 Contribution margin 129.000 27,000 60,000 33,000 180,00 Fixed expenses: 63,000 90,000 27,000 Advertising, traceable 30,000 Depreciation of special equipment 10,000 14,000 6,898 23,00 Salaries of product-line managers 6,000 9,000 8,000 35,000 Allocated common fixed expenses 12,000 13,000 10,000 60,000 18.000 30,000 Total fixed expenses 12,000 148,000 46,000 65,000 36,000 Net operating income (less) $ 32,000 $ 17,000 $ 24,000 $ (9,000) *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 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > Financial advantage per quarter Financial advantage (disadvantage) per quarter Management is concemed 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? OYes ONO *** Uw 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)