Hwk Ch13c Swed Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indica The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales an expenses for the past quarter follow: si Variable manufacturing and selling expenses Contribution sang Pised expenses Advertising, traceable Depreciation of special equipment Salaries of product line managers Allobated common fixed expense Total fixed expenses Het operating income flos) Dirt Mountain Racing Total Bikes bikes Bikes 5923,000 $268,000 $404,000 6 251,600 470,000 110,000 200,000 152,000 453,000 30000 200.000 99.000 69,600 6,500 40,200 43,300 20,400 7.800 15,100 115,900 40.800 38,400 36,700 184,400 53.600 80.800 30,200 412,400 123,300 167,200 122.900 5 39.600 5 26.700 26.600 323.900) 20,900 "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 2. Prepare a property formatted segmented income statement that would be more useful to management in assessing the long run profitability of the various producties Answer is not complete. Complete this question by entering your answers in the tabs below. Reet Becured Required What the financial antagelsadvantage per quarter of discontinuing the Racing is? 1 of 5 Next > 90 5 % 5 2 3 6 8