Check my work The Regal Cycle Company manufactures three types of bicycles-a dutbike, a mountain bike, and a racing bike Data on sales and expenses for the past quarter follow Dirt Baci Sales Total is Bikes $9.000 52.000 5 Variable sanufacturing and selling expens 402,000 $255,000 41.000 119, Contribution sain 205,000 199,00 150,00 Fixed penses 06.000 Advertisine traceable Depreciation of special event 3.700 A300 41.000 20,400 14.400 21.00 Salaries of product line managers 7.50 15.000 113.00 4200 30, Allacate condenses 35.100 10500 5 10.10 Total Fedewpenses $1.000 432200 123.100 167 122.00 Wet operating income (s) 3,5 26,7005 11,500 $3,400 "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 2. Should the production and sale of racing bes be discontinued ncul advantage disadvantage per quarter of discontinuing the racing bikes? 3. Prepare a properly formatted segmented income statement that would be more used to management in assessing the long run profitability of the various product lines 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 manager 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 Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Sew Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in asses run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes $ 402,000 $ $ $ 926,000 481,000 445,000 269,000 119,000 150.000 Racing Bikes 255,000 159,000 96,000 203,000 199,000 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) 69,700 44,400 113,900 228,000 217,000 8,300 21,000 40,200 69,500 80,500 41,000 7.500 38,600 87,100 20,400 15,900 35,100 71,400 24,600 $ $ 49.900 $ $ 217.000
