Graded Homework 0 Saved Help Seve Butima 2 Exercise 11-2 (Algo) Dropping or Retaining a Segment [LO11-2) Chademy The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bice, and a racing bike. Data on sales and expenses for the past quarter follow 3.5 onts oral 1919.000 4670 452,000 Dit is 263,000 113.000 120.000 Houstan 40,000 197.000 0.000 Nacing Bikes 325,000 197.000 99.00 Sales Variable nutacturing and selling Contribution margin Fixed expect Advertising, traonable Depreciation of special equipment Salaries of prodot-liners Allocated on fixed expenses Total fixed expenses et operating in Los) 40.00 Phim 7.900 30,00 10.000 46.000 125,600 10.000 4100 2.600 3.500 20.500 40.600 526 127200 $127.000 30,00 13.600 36,60 2020 122100 12.1001 10100 39.90 Allocated on the basis of sales dollars Management is concerned about the continued losses shown by the racing bikes and wants recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no real 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 insting the long run profitability of the various product lines Hi Graded Homework Saved Help Save 4 Exit Submit Check my work 2 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 propetly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines, 2.5 points Complete this question by entering your answers in the tabs below. Book Required 1 Required 2 Required Print References What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 ) Save Exit Submit Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate completion. 2 profitability of thewarious product lines. Return to question Totals Dirt Bikes Mountain Bikes Racing Ekos Contribution margin loss) Traceable fixed expenses 0 0 0 0 D 0 0 0 Total traceable fixed expenses Product line segment margin (so) 0 $ 0 $ 0 5 $ 0 Net operating income on)