requirement 1 and 3. Thank you
3 The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow 12 points 03:57:51 sales Variable nanufacturing and selling expenses Contribution margin Taxed expenses Advertising, traceable Depreciation of special equipment salaries of product line managers Allocated common fixed expen Total fixed expenses Het operating incon (losa) Dirt Mountain Racing Totat Bike Bikes Bikes 5918,000 $262.000 $404,000 5 252,000 469,000 111.000 199,000 159,000 44,000 151.000 205,000 93,000 70,300 8.900 40,400 21,000 43,900 20.000 7.300 15,800 114,100 40,400 30,000 35,700 183.600 32,109 10.000 50,400 411,900 192,500 16600 122.900 5 37,100 28,500 $ 38,500 (25,900) "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, 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. Complete this question by entering your answers in the tabs below. 3 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 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. 12 points 8 0257 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? Robled Required 2 > Financial (disadvantage) per quarter Financial advantage per quarter 3 profitability of the various product lines. Complete this question by entering your answers in the tabs below. 12 points 03:56:52 Required 1 Required 2 Required 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. Dirt Bikes Mountain Bike Racing Bikes Totals Contribution margin (los) Traceable food expenses Total traceable fixed expenses Product line segment margin (0) Not operating income (losa)
