B3 The Regal Cycle Company manufactures three types of bicycles-a dat bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Sales Variable sanufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special epilpeent Salaries of product-line managers Allocated common fixed expenses Tatal fixed expenses Allocated on the basis of sales dollars Racing has Jutal Dire 110,000 5405,000 $253,000 105,000 160,000 230,909 65,700 43, 20,300 7,200 35,900 414,100 $ 16,300 122,50 (34,5) 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 decontinuing 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 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Advertising. Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating incose (loss) Allocated on the basis of sales dollars 115,- 185, 414, $ 53,9 Management is concerned about the continued losses shown by the the line should be discontinued. The special equipment used to prod Required: 1. What is the financial advantage (disadvantage) per quarter of discor 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that wa profitability of the various product lines. Complete this question by entering your answers in the tabs bel Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuin re to search 11 Requ Variable manufacturing and selling 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. 65 45 115 185 414 $ 53 Management is concerned about the continued losses shown by th the line should be discontinued. The special equipment used to pre Required: 1. What is the financial advantage (disadvantage) per quarter of disc 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that profitability of the various product lines. Complete this question by entering your answers in the tabs Required 11 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? OYes ONO https//et.mhiducation.com/mt/masvindechinill MCC CA Foundations Money Net operating income (lays) Alocated on the basis of sales dollars 414,100 123,700 $51,100 $36 167,500 $42,300 Management is concerned about the continued losses shown by the racing bikes and wares a recommen the line should be discontinued. The special equipment used to produce racing bikes has no resale value Required What is the financial advantage idsadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a property formatted segmented income statement that would be more useful to management k profitability of the various product lines Complete this question by entering your answers in the tabs below. Required 2 Property matted segmented income statement that would be more useful to management in assh abity of the varie product line O T Det kes Make Hacing Bites 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 Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Total Dirt Bikes $ 928,000 460,000 468,000 $ 270,000 110,000 160,000 Mountain Bikes $ 405,000 195,000 210,000 Racing Bikes $ 253,000 155,000 98,000 69,700 8,600 40,800 20,300 43,500 20,600 7,200 15,700 115,300 40,500 38,900 35,900 185,600 54,000 81,000 50,600 414,100 123,700 167,900 122,500 $ 53,900 $ 36,300 $ 42,100 $ (24,500) 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 the financial advantage (disadvantage) or under of discontinuing the Racing Bikes? 160,000 210,000 98,000 vertising, traceable Depreciation of special equipment 69,700 8,600 40,800 20,300 43,500 Salaries of product-line managers 20,600 7,200 15,700 Allocated common fixed expenses 115,300 40,500 38,900 35,900 185,600 Total fixed expenses 414,100 54,000 123,700 81,000 50,600 167,900 122,500 Net operating income (loss) $53,900 $ 36,300 $42,100 $ (24,500) "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 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. 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 Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) Allocated on the basis of sales dollars. Total Dirt Bikes $ 928,000 460,000 468,000 $ 270,000 110,000 160,000 Mountain Bikes $ 405,000 195,000 210,000 Racing Bikes $ 253,000 155,000 98,000 69,700 8,600 40,800 20,300 43,500 20,600 7,200 15,700 115,300 40,500 38,900 35,900 185,600 54,000 81,000 50,600 414,100 123,700 167,900 122,500 $ 53,900 $ 36,300 $ 42,100 $ (24,500) anagement is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not e line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) "Allocated on the basis of sales dollars. 20,300 43,500 20,600 7,200 15,700 115,300 40,500 38,900 35,900 185,600 54,000 81,000 50,600 414,100 123,700 167,900 122,500 $ 53,900 $ 36,300 $ 42,100 $ (24,500) 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: 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 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes