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Please help me with these 2 questions by 11:59pm tomorrow, if you could also explain how you solved each one that would be amazing! Thank

Please help me with these 2 questions by 11:59pm tomorrow, if you could also explain how you solved each one that would be amazing! Thank you!!

1) 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:

Total Dirt Bikes Mountain Bikes Racing Bikes
Sales $ 931,000 $ 265,000 $ 408,000 $ 258,000
Variable manufacturing and selling expenses 475,000 116,000 206,000 153,000
Contribution margin 456,000 149,000 202,000 105,000
Fixed expenses:
Advertising, traceable 69,900 8,900 40,800 20,200
Depreciation of special equipment 43,600 20,600 7,300 15,700
Salaries of product-line managers 114,400 40,100 38,700 35,600
Allocated common fixed expenses* 186,200 53,000 81,600 51,600
Total fixed expenses 414,100 122,600 168,400 123,100
Net operating income (loss) $ 41,900 $ 26,400 $ 33,600 $ (18,100)

*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.

a. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

b. Should the production and sale of racing bikes be discontinued?

c. 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.

2) Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally:

Per Unit 17,000 Units per Year
Direct materials $ 17 $ 289,000
Direct labor 8 136,000
Variable manufacturing overhead 4 68,000
Fixed manufacturing overhead, traceable 6* 102,000
Fixed manufacturing overhead, allocated 9 153,000
Total cost $ 44 $ 748,000

*One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value).

a. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?

b. Should the outside suppliers offer be accepted?

c. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?

d. Given the new assumption in requirement 3, should the outside suppliers offer be accepted?

Thank you!!

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