I need help with a managerial accounting question. All parts pertain to the same question.
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: Dirt Mountain Racing Total Bikes Bikes Bikes Sales $928, 000 $269, 000 $ 404, 000 $ 25. Variable manufacturing and selling 463, 000 112, 000 200 , 000 151, 000 expenses Contribution margin 465, 000 157, 000 204, 000 104, 000 Fixed expenses: Advertising, traceable 70, 000 8, 500 40,900 20, 600 Depreciation of special equipment 43, 700 20, 100 7,900 15, 700 Salaries of product-line managers 115, 800 40 , 400 38, 700 36, 70 Allocated common fixed expenses* 185 , 600 53, 800 80, 800 51, 000 Total fixed expenses 415 , 100 122, 800 168, 300 124, 000 Net operating income (loss) $ 49, 900 $ 34, 200 $ 35, 700 $ (20, 000) *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 properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the var 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? Required 1 Required 2 >The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Di rt Mountain Racing Total Bikes Bikes Bikes Sales . _ $928,000 $269,000 $494,999 $ 255,999 vagggkgeganufa'tumg and 'eumg 463.000 112.999 299.999 151.999 Contribution margin 465,000 157,000 204,000 104,000 Fixed expenses: Advertising, traceable 70,000 8,500 40,900 20,600 Depreciation of special equipment 43.700 20,100 7,900 15,700 Salaries of product-line managers 115,000 40,400 38,700 36,700 Allocated common fixed expenses: 185,600 53,800 80,300 51,000 Total fixed expenses 415,100 122,800 163,300 124,000 Net operating income (loss) $ 49.900 $ 34.200 $ 35,700 $00,000) , '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 nancial 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 management in assessing the long-run profitability ofthe various product lines. Complete thls question by entering your answers In the tabs below. --- Should the production and sale of racing bikes be discontinued? 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: Dirt Mountain Racing Total Bikes Bikes Bikes Sales $928, 000 $269, 000 $ 404, 000 $ 255, 000 Variable manufacturing and selling 463 , 000 112, 000 200, 000 151, 000 expenses Contribution margin 465 , 000 157 , 000 204, 000 104, 000 Fixed expenses: Advertising, traceable 70, 000 8, 500 40, 900 20, 600 Depreciation of special equipment 43, 700 20, 100 7,90 15, 700 Salaries of product-line managers 115, 800 40 , 400 38, 700 36, 700 Allocated common fixed expenses* 185 , 600 53 , 800 80, 800 51, 000 Total fixed expenses 415 , 100 122, 800 168, 300 124, 000 Net operating income (loss) $ 49, 900 $ 34, 200 $ 35, 700 $ (20, 000) *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 properly 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 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Net operating income (loss)
