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The Regal Cycle Company manufactures three types of bicycles-a dirt bike, and a racing bike. Data on sales and expenses for the past quarter follow:
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, and a racing bike. Data on sales and expenses for the past quarter follow: * 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. What is the amount of the change in net income if the racing bikes is dropped? (Input the amount as positive value. Omit the " $ " sign in your response.)
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