beton somhedin.com/comodal browser.com www 11 Homework The legal Cycle Company manufactures three types of bicycles-adicta mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Sales Variable facturing selling expenses Contributia angin Advertising, traceable Depreciation of specialment Salaries of product line managers Allocated on fixed expenses Total fine Diet Mountain Hacie Bike Bikes $23,000 $7,000 $40,000 $ 211,000 4000 11.000 160.000 10 200.000 91.00 69,000 3.00 4,200 20,200 49,00 20. 7,500 15.500 115,00 40,00 38.100 1156, D53.400 50 $12.000 119,00 122100 5 41,000 $2,100 9,200 1,100) "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 no 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. Prev 1 of 3 Next > Search O + Connect education.com/et/map/indectrolcon conexternal browserslaunchur https253A%252F%252Fims.medication.com252Fmgmidd Homework Required 1 Requwed 2 Required 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 Totals Dirt Bikes Mountain Bike Racing Bales 0 O 0 Saks Marble manufacturing and selling expenses Contribution margin (los) Traceable fred expenses Depreciation of special equipment Advertising, traceable Salaries of the product line managers Total traceable aed expenses Product line segment margin (1) Common foxed expenses Net operating income (los) 0 D 0 0 05 0 05 0 $ $ D O MED . to search