{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T05:04:43-04:00", "answer_date": "2024-05-25 05:04:43", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1668683", "url": "\/study-help\/questions\/the-regal-cycle-company-manufactures-three-types-of-bicyclesa-dirt-1668683", "question_creation_date_js": "2024-05-25T05:04:43-04:00", "question_creation_date": "May 25, 2024 05:04 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 expenses for the", "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 expenses for the past quarter follow 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) Allocated on the basis of sales dollars Total $ 916,000 469,000 447,000 Dirt Bikes $ 265,000 116,000 149,000 Mountain Bikes $ 400,000 Racing Bikes $251,000 203,000 150,000 197,000 101,000 69,500 8,600 40,600 20,300 42,900 20,200 7,500 15,200 115,500 40,700 38,500 36,300 183,200 53,000 411,100 122,500 80,000 166,600 50,200 122,000 $ 35,900 $ 26,500 $ 30,400 $ (21,000) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or 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 rum profitability of the various product lines Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 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": "\"image", "transcribed_text": "The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales expenses for the past quarter follow: 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) \"Allocated on the basis of sales dollars. Total $ 916,000 469,000 447,000 Dirt Bikes $ 265,000 116,000 149,000 Mountain Bikes $ 400,000 Racing Bikes $251,000 203,000 150,000 197,000 101,000 69,500 8,600 40,600 20,300 42,900 20,200 7,500 15,200 115,500 40,700 38,500 36,300 183,200 53,000 411,100 122,500 80,000 166,600 50,200 122,000 $ 35,900 $ 26,500 $ 30,400 $ (21,000) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or 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-rum profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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.", "related_book": { "title": "Managerial Accounting", "isbn": "B010IKDQZM", "edition": "10th Edition", "authors": "Carl S. Warren, James M. Reeve, Jonathan E. Duchac", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/125.jpg", "uri": "\/textbooks\/managerial-accounting-10th-edition-b010ikdqzm", "see_more_uri": "" }, "free_related_book": { "isbn": "1284070913", "uri": "\/textbooks\/sandra-smiths-review-for-nclex-rn-13th-edition-9781284070910", "name": "Sandra Smiths Review For NCLEX-RN", "edition": "13th Edition" }, "question_posted": "2024-05-25 05:04:43", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/solve-the-following-instance-of-the-01-kropsack-problem-using-410018", "description": "solve the following instance of the 0\/1 kropsack problem using dynamic programming approach. Assume that the knapsack capacity is 9. 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