Check my w 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. alam Variable manufacturing and selling expenses Contribution margin Tixed expenses Advertising, traceable Depreciation of special pent salaries of product line Managers Milosted on fixed expenses Total fixed expenses Met operating Incon (los) Dirt Mountain Racing Bikes Bikes $325,000 $265,000 $405,000 $257,000 475.000 119,000 202,000 154,000 450,000 144,000 203,000 103,000 69,100 8,600 40,200 20,300 43,200 20,300 7,200 15,700 115,000 40,200 38,700 36,500 105,000 52,500 B1.000 51.000 412.300 121 700 165.200 123.900 $ 37,700 $ 22,300 $ 36,100 $(20,900) "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 property formatted segmented income statement that would be more us@ut 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? Dr 1620 Next > "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 Required 2 Required a What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > domy various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a property 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)
