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4 Check my work The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on
4 Check my work 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 nts Skipped ellook) References 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) "Allocated on the basis of sales dollars. Total Racing Bikes Dirt Mountain Bikes Bikes $300,000 $90,000 $150,000 $ 60,000 120,000 27,000 60,000 33,000 180,000 63,000 90,000 27,000 30,000 10,000 14,000 6,000 23,000 6,000 9,000 8,000 35,000 12,000 13,000 10,000 148,000 60,000 18,000 46,000 30,000 12,000 66,000 36,000 $ 32,000 $17,000 $ 24,000 s (9,000) Management is concerned about the continued losses shown by the raging 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
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