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Can you put the answers in graph form too please The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and
Can you put the answers in graph form too please
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 $ 930,000 $266,000 $ 404,000 $ 260,000 461,000 114,000 194,000 153,000 469,000 152,000 210,000 107,000 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) 69,900 43,900 114,300 186,000 414,100 54,900 8,200 20,300 40,500 53,200 122,200 29,800 40,800 20,900 7,900 15,700 38,300 35,500 80,800 52,000 167,800 124,100 42,200 $ (17,100) *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 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? Financial (disadvantage) per quarter (47,800) Required 1 Required 2 > 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. Totals Dirt Bikes Mountain Racing Bikes Bikes Sales $ 930,000 $ 266,000 $ 404,000 $ 260,000 Variable manufacturing and selling expenses 480,000 116,000 208,000 156,000 Contribution margin (loss) 450,000 150,000 196,000 104,000 Traceable fixed expenses: Advertising, traceable 69,500 8,400 40,200 20,900 Depreciation of special equipment 43,500 X 20,500 7,300 15,700 Salaries of the product line managers 114,200 40,600 38,300 35,300 Total traceable fixed expenses 227,200 69,500 85,800 71,900 Product line segment margin (loss) 222,800 $ 80,500 $ 110,200 $ 32,100 Common fixed expenses 186,000 Net operating income (loss) $ 36,800
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