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Just required 1 and 3. Thank you! The Regal Cycle Company manufactures three types of bicycles-o dirt bike, a mountain bike, and a racing bike
Just required 1 and 3. Thank you!
The Regal Cycle Company manufactures three types of bicycles-o dirt bike, a mountain bike, and a racing bike Dots on sales and expenses for the past quarter follow Dirt Mountain Hacing Total Bikes Diken Bikes $929,000 $266,000 $ 406,000 9 257,000 483,000 119,000 207,000 157.000 445.000 147.000 199,000 100.000 Sales variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment salaries of product-line managers Allocated connon fixed expenses Total fixed expenses Net operating Income (108) 69,000 8,200 40,200 20.600 43.900 20,000 7.600 15,500 114,200 40,300 38.200 35,700 165,000 53,200 81,200 51,400 412,900 122,500 167,200 123,200 5 33,100 $ 24,500 $ 31,800 $123,200) "Allocated on the basis of sales dollars. Management is concemed 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 2 Required: Required What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Red Required 2 > Total fixed expenses Net operating income (loss) 412,900 122,500 167,200 123,200 $ 33,100 $ 24,500 $ 31,800 $(23,200) "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 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. Dirt Bikes Mountain Bike Racing Bikes Totals Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) Step by Step Solution
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