9105 PM Thu Dec 15 '3 B 35% l B ezto.mheducationlcom Z \"in: ,ii ll llllll mi inn' , l l Twim Question'l - Chapter 13 Pre-Built Problems - Connect ('nni-m Him, Chapter 13 PreBuilt Problems 0 saved Help Save & Exit Submit Check my work The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike' Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Bikes Bikes 10 Sales $934,000 $267,000 $407,000 $ 260,000 , t , . . POInS Variable manufacturing and selling 474,000 117,000 205,000 152,000 expenses SkiPPed Contribution margin 460, 000 150, 000 202,000 108,000 Fixed expenses: Advertising, traceable 70,200 8,600 40,900 20,700 Depreciation of special equipment 43, 300 20, 200 7,800 15,300 El Salaries of productline managers 114,200 40,500 38,500 35,200 eBOOk Allocated common fixed expenses>k 186, 800 53,400 81,400 52,000 Total fixed expenses 414,500 122,700 168,600 123,200 Net ope rating income (loss) $ 45. 500 $ 27. 300 $ 33,400 $(15.200) Hint i if! *Allocated on the basis of sales dollars. P' t m Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not E the line should be discontinued, The special equipment used to produce racing bikes has no resale value and does not wear out References Required; 11 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 21 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 9105 PM Thu Dec 15 ' ? a 35% l H eztomheducationtcom Question 'I - Chapter 13 Pre-Built Problems - Connect Chapter 13 Pre-Built Problems 0 saved Help Save & Exit Submit Check my work M..- _... 1 1' What is the financial advantage (disadvantage) per quarter ofdiscontinuing 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. 10 points Complete this question by entering your answers in the tabs below. skipped Required 1 Required 2 Required 3 930\" Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run protability of the various product lines. Hint print Contribution margin (loss) Traceable fixed expenses: References Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) ( ed 2 Mc 'rlalw Prev 1 of 7 Next > I 9105 PM Thu Dec 15 '3 B 35% l B ezto.mheducationtcom Z \"in: ,il ii llllll ml min , l l Twim Questionl - Chapter 13 Pre-Built Problems - Connect ('niii-m Him, Chapter 13 PreBuilt Problems 0 saved Help Save & Exit Submit Check my work The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: 10 Dirt Mountain Racing points Total Bikes Bikes Bikes Sales $934,000 $267,000 $407,000 $ 260,000 Skipped Variable manufacturing and selling 474.0% 117,000 205,000 152,000 expenses Contribution margin 460,000 150,000 202,000 108,000 Fixed expenses: El Advertising, traceable 70,200 8,600 40,900 20,700 egook Depreciation of special equipment 43, 300 20, 200 7,800 15,300 Salaries of productline managers 114,200 40,500 38,500 35,200 Allocated common fixed expenses>ll