requirement #1 & #3

Total Bikes Bikes Bikes $ 921,000 $261,000 $ 403,000 $ 257,000 470,000 120,000 194,000 156,000 451,000 141,000 209,000 101,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,300 8,400 40,400 20,500 43,100 20,200 7,400 15,500 114,300 40,600 38,200 35,500 184,200 52,200 80,600 51,400 410,900 121,400 166,600 122,900 $ 40,100 $ 19,600 $ 42,400 $(21,900) *Allocated on the basis of sales dollars. Management is concerned about the cominued losses shown by the racing bikes and wants a recommendation as the line should be discontinued. The special equipment used to produce racing bikes has no resale value and doe 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 asses 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? Financial (disadvantage) per quarter Required 1 Required 2 Required 3 S 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 Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 Contribution margin (loss) Traceable fixed expenses: 0 0 0 0 Total traceable fixed expenses Product line segment margin (loss) 0 $ 0 0 $ 0 Net operating income (oss) $ 0