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Question 4 [7 marks] (CLO 4): Keep or Drop a line The Regal Motorcycle Company manufactures three types of Motorbikes-touring, off-road, and a racing motorbike.

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Question 4 [7 marks] (CLO 4): Keep or Drop a line The Regal Motorcycle Company manufactures three types of Motorbikes-touring, off-road, and a racing motorbike. Data on sales and expenses for the past quarter follow: Management is concerned about the continued losses shown by the racing motorbikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing motorbikes has no resale value and does not wear out. The supervisor salary $35,500 is only for racing motorbikes and would be laid off if racing motorbikes are discontinued. Required: Prepare a keep or drop analysis to show whether the production and sale of racing motorbikes be discontinued. Show your recommendation

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