{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T08:12:05-04:00", "answer_date": "2024-05-26 08:12:05", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1729582", "url": "\/study-help\/questions\/sales-variable-manufacturing-and-selling-expenses-contribution-margin-fixed-expenses-1729582", "question_creation_date_js": "2024-05-26T08:12:05-04:00", "question_creation_date": "May 26, 2024 08:12 AM", "meta_title": "[Solved] Sales Variable manufacturing and selling | SolutionInn", "meta_description": "Answer of - Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciat | SolutionInn", "meta_keywords": "sales,variable,manufacturing,selling,expenses,contribution,margin,fixed,advertising,traceable,depreciation,special", "question_title_h1": " 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*", "question_title": " Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising,", "question_title_for_js_snippet": "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 Income Net operating Income (loss) Allocated on the basis of sales dollars Total $ 916,000 Dirt Bikes Mountain Bikes $ 401,000 Racing Bikes $ 253,000 470,000 446,000 $ 262,000 116,000 146,000 201,000 200,000 153,000 100,000 69,500 8,900 40,500 20,100 43,400 20,300 7,900 15,200 115,900 40,500 38,900 36,500 183, 200 412,000 52,400 80,200 50,600 122,100 167,500 122,400 $ 34,000 $ 23,900 $ 32,500 $ (22,400) 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 ", "question_description": "\"image\"image\"image\"image", "transcribed_text": "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 Income Net operating Income (loss) *Allocated on the basis of sales dollars. Total $ 916,000 Dirt Bikes Mountain Bikes $ 401,000 Racing Bikes $ 253,000 470,000 446,000 $ 262,000 116,000 146,000 201,000 200,000 153,000 100,000 69,500 8,900 40,500 20,100 43,400 20,300 7,900 15,200 115,900 40,500 38,900 36,500 183, 200 412,000 52,400 80,200 50,600 122,100 167,500 122,400 $ 34,000 $ 23,900 $ 32,500 $ (22,400) 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.", "related_book": { "title": "Managerial Accounting", "isbn": "978-0073379616, 73379611, 978-0697789938", "edition": "13th Edition", "authors": "Ray H. Garrison, Eric W. Noreen, Peter C. Brewer", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/25.jpg", "uri": "\/textbooks\/managerial-accounting-13th-edition-25", "see_more_uri": "" }, "free_related_book": { "isbn": "0425282627", "uri": "\/textbooks\/a-dark-and-twisting-path-1st-edition-978-0425282625-101614", "name": "A Dark And Twisting Path", "edition": "" }, "question_posted": "2024-05-26 08:12:05", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/answer-as-soon-as-possible-please-2-calculate-the-numerical-387394", "description": "Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. 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