Kristen Lu purchased a used automobile for $24.650 at the beginning of last year and incurred the following operating costs: Depreciation ($24,658 . 5 years) $ 4,930 Insurance $ 2.680 Garage rent $ 1,3ee Automobile tax and license 5 670 Variable operating cost $ 0.05 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs, Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-ine depreciation is $4.930. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 19.000 miles last year. Compute the average cost per mile of owning and operating the car (Round your answers to 2 decimal places.) Average fixed cost per milo Variable operating cost per me Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable operating costs Depreciation Automobile tox License costs Insurance costs 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: Mountain Total Dirt Bikes Bikes Sales Racing Bikes $ 918,000 Variable manufacturing and selling expenses $ 262,000 $ 401,000 $ 255,000 471,000 120,000 194,000 Contribution margin 157,000 447,000 142,900 207,900 98,000 Fixed expenses: Advertising, traceable 69,000 8,400 40,500 20,100 Depreciation of special equipment 44,200 20,700 7,700 15,800 Salaries of product-line managers 116,000 40,900 38,900 36,200 Allocated common fixed expenses. 183,600 52,400 80,200 51,000 Total fixed expenses 412,880 122,400 167,300 123, 100 Net operating income (loss) $ 34,200 $ 19,600 $ 39,700 $ (25,100) "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 facing 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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 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 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 0 0 0 0 Contribution margin (loss) Traceable foxed expenses 0 0 0 Total traceable fixed expenses Product line segment margin (los) 0 $ 0 $ 0 $ 0 Net operating income (loss) $ 0 Required 2