{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-08T10:21:36-04:00", "answer_date": "2024-06-08 10:21:36", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2471606", "url": "\/study-help\/questions\/the-regal-cycle-company-manufactures-three-types-of-bicycles-a-2471606", "question_creation_date_js": "2024-06-08T10:21:36-04:00", "question_creation_date": "Jun 08, 2024 10:21 AM", "meta_title": "[Solved] The Regal Cycle Company manufactures thre | SolutionInn", "meta_description": "Answer of - The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bike, and a racing bike. Data on | SolutionInn", "meta_keywords": "regal,cycle,company,manufactures,three,types,bicycles,dirt,bike,mountain,racing,data", "question_title_h1": "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", "question_title": "The Regal Cycle Company manufactures three types of bicycles a dirt bike,", "question_title_for_js_snippet": "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 Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 9 2 1 , 0 0 0 $ 2 6 1 , 0 0 0 $ 4 1 0 , 0 0 0 $ 2 5 0 , 0 0 0 Variable manufacturing and selling expenses 4 8 0 , 0 0 0 1 1 6 , 0 0 0 2 0 4 , 0 0 0 1 6 0 , 0 0 0 Contribution margin 4 4 1 , 0 0 0 1 4 5 , 0 0 0 2 0 6 , 0 0 0 9 0 , 0 0 0 Fixed expenses Advertising, traceable 6 8 , 9 0 0 8 , 1 0 0 4 0 , 6 0 0 2 0 , 2 0 0 Depreciation of special equipment 4 3 , 9 0 0 2 0 , 5 0 0 7 , 7 0 0 1 5 , 7 0 0 Salaries of product line managers 1 1 5 , 9 0 0 4 0 , 8 0 0 3 8 , 3 0 0 3 6 , 8 0 0 Allocated common fixed expenses 1 8 4 , 2 0 0 5 2 , 2 0 0 8 2 , 0 0 0 5 0 , 0 0 0 Total fixed expenses 4 1 2 , 9 0 0 1 2 1 , 6 0 0 1 6 8 , 6 0 0 1 2 2 , 7 0 0 Net operating income ( loss ) $ 2 8 , 1 0 0 $ 2 3 , 4 0 0 $ 3 7 , 4 0 0 $ ( 3 2 , 7 0 0 ) 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 ", "question_description": "