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please help Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 925,000 $ 262,000 $ 400,000 $ 255,000 Variable manufacturing and selling expenses 473,000 110,000
please help Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 925,000 $ 262,000 $ 400,000 $ 255,000 Variable manufacturing and selling expenses 473,000 110,000 205,000 158,000 Contribution margin 452,000 152.000 203.000 97,000 Fixed expenses: Advertising, traceable 69,400 8,500 40,700 20,200 Depreciation of special equipment 43,700 20,600 7,300 15,800 Salaries of product-line managers 114,900 40,700 38,200 36,000 Allocated common fixed expenses 185,000 52,400 81,600 51,080 Total fixed expenses 413,000 122,200 167,800 123,000 Net operating income (1oss) $ 39,000 $ 29,800 $ 35,200 $ 26,000) **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 property formatted segmented income statement that would be more useful to management in assessing the long run profitability of the various product lines 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of lacing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing t 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? Required 2 > Financial (disadvantage) per quarter Financial advantage per quarter
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