47:39 Check my wom 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. Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment ped Salaries of product-line managers Allocated common fixed expenses Total fixed expenses ook Net operating income (loss) int "Allocated on the basis of sales dollars. Total $ 929,000 Dirt Bikes $ 266,000 Mountain Bikes: $ 407,000 463,000 114,000 196,000 Racing Bikes $ 256,000 153,000 466,000 152,000 211,000 103,000 69,900 8,800 40,300 20,800 42,700 20,300 7,200 15,200 114,700 40,100 38,200 36,400 185,800 53,200 81,400 51,200 413,100 122,400 167,100 123,600 $ 52,900 $ 29,600 $ 43,900 $ (20,600) hint rences 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. 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 the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 18 nces 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 Should the production and sale of racing bikes be discontinued? OYes ONO < Required 1 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. 07 Contribution margin (loss) Traceable fixed expenses: nces Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0