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Ch 11 Graded Homework i Saved Help Save & Exit Submit Check my work 2 Exercise 11-2 Dropping or Retaining a Segment (LO11-2) 1.42 points
Ch 11 Graded Homework i Saved Help Save & Exit Submit Check my work 2 Exercise 11-2 Dropping or Retaining a Segment (LO11-2) 1.42 points 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: eBook Dirt Mountain Racing Total Bikes Bikes Bikes $ 933,000 $265,000 $ 410,000 $ 258,000 458,000 113,000 191,000 154,000 475,000 152,000 219,000 104,000 Hint Print References 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 (losa) 69,600 8,500 40,400 20,700 43,200 20,200 7,300 15,700 113,500 40,300 38,000 35,200 186,600 53,000 82,000 51,600 412,900 122,000 167, 700 123,200 $ 62,100 $ 30,000 $ 51,300 $(19,200) "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. Ch 11 Graded Homework i Seved Help Save & Exit Submit Check my work 2 "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. 1.42 points 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. eBook Hint Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Financial (disadvantage) per quarter Required 1 Required 2 > Ch 11 Graded Homework A Saved Help Save & Exit Submit Check my work 2 *Allocated on the basis of sales dollars. 1.42 points 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. eBook 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. Hint Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Should the production and sale of racing bikes be discontinued? Yes No Ch 11 Graded Homework A Saved Help Save & Exit Submit Check my work 2 wwwwwwwwwwww 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. 1.42 points Required 1 Required 2 Required 3 eBook Hint 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. Print References Totals Dirt Bikes Mountain Bikes Racing Bikes 933.000 $ 265,000 $ 410,000 $ 258.000 $ 933,000 265,000 410,000 258,000 Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: Advertising Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses Product line segment margin (loss) Common fixed expenses Net operating income (loss) 0 0 0 265,000 $ 0 258,000 933.000 $ 410,000 $ $ 933,000
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