Check my work 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 S 929,000 $267, eee $ 402,000 $ 250,000 478,000 118,000 205.000 155,000 451,000 149,000 197,000 105,000 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 (los) 78,200 8,70 40. Be 20,700 41,400 20,500 7.400 15,500 114,300 4,200 38,200 35.980 185.800 53,400 se.ee 52.000 411.700 122,800 166,00 124,100 $ 37,300 26,200 530,200 $(19.100) 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 property formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines Prey 1 of 15 Next > Check my work 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 ces What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > 1 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 useful to management in assessing the long run profitability of the various product lines. 6 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Should the production and sale of racing bikes be discontinued You ON Check my work 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 Bike Racing Bikes Contribution margin (los) Traceable fred expenses CE Total trouble food expenses Product in segment margin (los) Net operating income (1)
