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my answer is not correct. The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on
my answer is not correct.
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 Bikes Total Bikes Bikes 923,000 $262,000 $403,000 258,000 Sales Variable manufacturing and selling 470,000 119,000 192,000 159,000 expensOS Contribution margin Fixed expenses: 69,400 8,900 40,300 20,200 16,000 36,500 184,600 52,400 80,600 51,600 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 7,800 114,900 40,400 38,000 43,900 20,100 es 800 Total fixed expenses Net operating ineome (loss) 40,200 21,200 44,300 (25,300) 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. 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? inancial (disadvantage) per quarter $ (26,300) Step by Step Solution
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