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 properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Answer is complete but not entirely correct. 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 924,000 466,000 458,000 $ Dirt Bikes $ 263,000 117,000 146,000 Mountain Bikes $ 408,000 191,000 217,000 Racing Bikes 253,000 158,000 95,000 Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses Product line segment margin (loss) Common fixed expenses Net operating income (loss) 4 69,000 44,200 114,500 227,700 230,300 412,500 $ (182,200) 8,100 20,500 0,400 69,000 77,000 40,400 7,700 38.200 86,300 130,700 20,500 16,000 35,900 72,400 22,600 $ $ $ 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 properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Answer is complete but not entirely correct. 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 924,000 466,000 458,000 $ Dirt Bikes $ 263,000 117,000 146,000 Mountain Bikes $ 408,000 191,000 217,000 Racing Bikes 253,000 158,000 95,000 Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses Product line segment margin (loss) Common fixed expenses Net operating income (loss) 4 69,000 44,200 114,500 227,700 230,300 412,500 $ (182,200) 8,100 20,500 0,400 69,000 77,000 40,400 7,700 38.200 86,300 130,700 20,500 16,000 35,900 72,400 22,600 $ $ $
