i need answer of part B. I have provided all the information to answer the question . thanks

Sheet View Wheet View Zoom 329 -612 H vo 1 Question 3 - Product line Analysis (29 marks) 2 The owners of Mountain Sports Ltd. are currently reviewing a proposal to adopt a new product line - BMX Bicycles. This new product line will be compatible with the Mountain Bikes and open a new target market, younger customers. It is anticipated that the BMX line be introduced next spring. 3 4 Management has estimated the following 5 Expected sales in bikes 430 6. Average selling price per bike 392.00 7 Purchase cost (COGS) per bike $ 13700 8 Assembly cost per bike $ 58.00 9 Sales Clarks required - Seasonal 2 10 Monthly Salary per Sales Clerk $ 1,176 11. Sales commissions 15% 12 Advertising campaign (annual cost) $ 4,112 13 10 The additional sales clerks required for the BMX une will only work for four months of the year (May to August). 15 Required: Part A (Chapter 6) (13 marks): Prepare a CVP income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. 16 17 15 Required: Part A (Chapter 6) (13 marks): Prepare a CVP Income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. 16 17 BMX Product Line Budgeted CVP Income Statement For the year ended December 31, 2020 18 TOTAL Per Bike Percentage 430 1.68.560 5 392.00 100% $ 19 20 Number of Bikes 21 Sales Revenue 22 Less: Variable Costs must be listed alphabetically) 23 Assembly 24 Cost of Goods Sold 25 Sales Commissions 26 Total Variable Costs 27 Contribution Margin 20 Less: Fixed Costs must be listed alphabetically) 29 Advertising 30 Salaries 31 Total Fixed Cost 32 Segment margin 24 940 58.00 58.910 137.00 25 284 58.80 1.09.134 253.80 59.4265 138.20 15% 35% 15% 65% 35% 4.112 2.352 6.464 52.962) 3 34 Required Part B (Chapter 6 & 7) 17 marks): This new AMXhikardiset line will create an increase in cate of twin denarmante Accessories (rator to 2 carmente 34 Required Part B (Chapter 6 & 7) (1 marks): This new BMX bike product line will create an increase in sales of two departments Accessories (refer to 22 segmented income statement for department information). However, due to the floor space required for retaling BMX Bikes, management estimates that sales of Mountain Bikes will decrease (hint remember that variable costs will also change when sales change) 35 36 Increase in Accessories Sales 12% 37 Decrease in Mountain Bikes Sales 4% 30 What is the impact to the company's income as a whole if the BMX product line is added (hint: consider the segment margin of the BMX product line, and the impact to the other product lines. Remember that if sales change for a product line, the total variable costs will also change. Thus, contribution margin should be used in your calculations for the other product lines) 39 0 52.962 41 Increase in BMX Segment Margin $ Increase in Contribution Margin - Accessories Decrease in Contribution Margin - Mountain Bikes show as negative number 44 NET Increase Decrease) in Operating Income 45 46 DECISION Should the company add the BMX bike product line? 17 18 Why or why not? Cose into 1 Q3 05 06 Sheet View Wheet View Zoom 329 -612 H vo 1 Question 3 - Product line Analysis (29 marks) 2 The owners of Mountain Sports Ltd. are currently reviewing a proposal to adopt a new product line - BMX Bicycles. This new product line will be compatible with the Mountain Bikes and open a new target market, younger customers. It is anticipated that the BMX line be introduced next spring. 3 4 Management has estimated the following 5 Expected sales in bikes 430 6. Average selling price per bike 392.00 7 Purchase cost (COGS) per bike $ 13700 8 Assembly cost per bike $ 58.00 9 Sales Clarks required - Seasonal 2 10 Monthly Salary per Sales Clerk $ 1,176 11. Sales commissions 15% 12 Advertising campaign (annual cost) $ 4,112 13 10 The additional sales clerks required for the BMX une will only work for four months of the year (May to August). 15 Required: Part A (Chapter 6) (13 marks): Prepare a CVP income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. 16 17 15 Required: Part A (Chapter 6) (13 marks): Prepare a CVP Income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. 16 17 BMX Product Line Budgeted CVP Income Statement For the year ended December 31, 2020 18 TOTAL Per Bike Percentage 430 1.68.560 5 392.00 100% $ 19 20 Number of Bikes 21 Sales Revenue 22 Less: Variable Costs must be listed alphabetically) 23 Assembly 24 Cost of Goods Sold 25 Sales Commissions 26 Total Variable Costs 27 Contribution Margin 20 Less: Fixed Costs must be listed alphabetically) 29 Advertising 30 Salaries 31 Total Fixed Cost 32 Segment margin 24 940 58.00 58.910 137.00 25 284 58.80 1.09.134 253.80 59.4265 138.20 15% 35% 15% 65% 35% 4.112 2.352 6.464 52.962) 3 34 Required Part B (Chapter 6 & 7) 17 marks): This new AMXhikardiset line will create an increase in cate of twin denarmante Accessories (rator to 2 carmente 34 Required Part B (Chapter 6 & 7) (1 marks): This new BMX bike product line will create an increase in sales of two departments Accessories (refer to 22 segmented income statement for department information). However, due to the floor space required for retaling BMX Bikes, management estimates that sales of Mountain Bikes will decrease (hint remember that variable costs will also change when sales change) 35 36 Increase in Accessories Sales 12% 37 Decrease in Mountain Bikes Sales 4% 30 What is the impact to the company's income as a whole if the BMX product line is added (hint: consider the segment margin of the BMX product line, and the impact to the other product lines. Remember that if sales change for a product line, the total variable costs will also change. Thus, contribution margin should be used in your calculations for the other product lines) 39 0 52.962 41 Increase in BMX Segment Margin $ Increase in Contribution Margin - Accessories Decrease in Contribution Margin - Mountain Bikes show as negative number 44 NET Increase Decrease) in Operating Income 45 46 DECISION Should the company add the BMX bike product line? 17 18 Why or why not? Cose into 1 Q3 05 06