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I only need #3, please make sure the photo you attach is not cut off. I'm having an issue with it being cut off when
I only need #3, please make sure the photo you attach is not cut off. I'm having an issue with it being cut off when accessing it on my phone. Exercise 11-2 Dropping or Retaining a Segment (L011-2) 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 Pixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loan) Dirt Mountain Racing Total Bikes Niken Bikes $933,000 $267,000 409,000 $ 257,000 471,000 116,000 204,000 151.000 462,668 151,600 205,000 106,000 70,100 9,000 40,400 20,700 43,700 20,300 7,800 15,600 114,700 40.600 38,700 35,400 186,600 53,400 81,800 51,400 41,100 123,100 165,700 123, 100 $ 46,900 $ 27,700 S 36,300 $17,100) *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
I only need #3, please make sure the photo you attach is not cut off. I'm having an issue with it being cut off when accessing it on my phone.
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