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i know its a disadvantage but i just cant get the correct answer can you please help me with #1 work The Regal Cycle Company
i know its a disadvantage but i just cant get the correct answer can you please help me with #1
work The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses Contribution margin Pred expenses Advertising, traceable Depreciation of special equipment Salaries of product-line manager Allocated common fixed expenses Total fixed expenses Net operating income (los) Dirt Mountain Racing Total Bikes Bikes Bikes $927.000 $264,000 $410,000 & 253,000 462,000 117,000 191.000 154,000 455,000 147,000 219.000 99,000 69,000 8,500 40,300 20,200 43,800 20,300 7.900 15,600 114,500 40,500 38,200 35,800 185,400 52,800 $2.000 50.600 412,700 122,100 168,400 122,200 $ 52,300 $ 24,900 $ 50,600 $123,200) "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 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. Required i Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Flegur Required 2 > Step by Step Solution
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