Help Save & E Submit The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bike, and a racing bike, Dots on sales and expenses for the past quarter follow Dirt Mountain Rain Total 5 925,000 $266,000 3409,000 $250,000 472,000 110.000 200.000 154.000 453000 156.000 201000 Sales variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising. traceable Depreciation of specialment salaries of productLine managers Allocated on fixed expenses Total led expenses Het operating incontos) 9,400 40.600 20.500 44.000 20.500 7,00 16.000 115.100 41.000 18,300 36,400 189,000 3.700 $1.000 50.000 13:09 17200 38,800 $32,00 33,00 372,500) "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 rosale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bes? 3. Prepare property 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. Proy 1 of 1 Next > ontinued losses shown by the racing bikes and wants a reco the line should be discontinued. The special equipment used to produce racing bikes has no resale 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 manage 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? Ratud Required 2 > Pro 42 BRE product and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more u profitability of the various product lines. Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes O No Prey 1 of 7 NE Saved 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 ic run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: + ces Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)
