Check my work The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing tike. Data on sales and expenses for the past quarter follow: Total $ 923,000 482,000 441,000 Dirt Bikes $ 262,000 117,000 145,000 Mountain Bikes $ 406,000 209,000 197,000 Racing Bikes $ 255,000 156,000 99.000 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 incon (los) 68, 700 43,100 114,600 184,600 411,000 $ 30,000 8.100 20,200 40,500 52,400 121,200 $ 23,800 40.200 7,500 38,500 81,200 167,400 $ 29,600 20,400 15,400 35,600 51,000 122,400 $ (23, 400) . ces *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 Should the production and sale of racing bikes be discontinued? Prey 1 of 6 Next > $ 29,600 $ 30,000 $ 23,800 Net operating income (loss) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recomm whether or not the line should be discontinued. The special equipment used to produce racing bikes ha 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 managemer 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 advantage (disadvantage) per quarter Required 2 > Help Save & Exit Saved work Check my Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented Income statement that would be more useful to management in assessing the long profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 Contribution margin (loss) Traceable fixed expenses 0 0 Total traceable foxed expenses Product line segment margin (loss) 0 0 0 $ 0 $ 0 $ 0 Net operating income (oss) $ 0
