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accounting question need urgently thx, everything is provided The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing

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accounting question need urgently thx, everything is provided

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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: Dirt Mountain Racing Total Bikes Bikes Bikes Sales $ 931,000 $269,000 $ 409,900 $ 253, 000 Variable manufacturing and selling expenses 465,006 110,000 198,906 157,000 Contribution margin 466,900 159, 900 211, 900 96, 900 Fixed expenses: Advertising, traceable 69,500 8,800 40, 400 20,300 Depreciation of special equipment 43, 200 20, 100 7,700 15, 400 Salaries of product-line managers 115, 700 40, 500 38, 600 36, 600 Allocated common fixed expenses* 186, 200 53, 800 81, 800 50,600 Total fixed expenses 414, 600 123, 200 168,500 122,900 Net operating income (loss) $ 51, 400 35,800 42,500 $ (26,900) *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? \fPrepare 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)

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