{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T22:04:35-04:00", "answer_date": "2024-05-26 22:04:35", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1762115", "url": "\/study-help\/questions\/the-regal-cycle-company-manufactures-three-types-of-bicyclesa-dirt-1762115", "question_creation_date_js": "2024-05-26T22:04:35-04:00", "question_creation_date": "May 26, 2024 10:04 PM", "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 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) Total Dirt Bikes Mountain Bikes Racing Bikes $ 924,000 $268,000 $405,000 $251,000 470,000 111,000 199,000 160,000 454,000 157,000 206,000 91,000 68,600 8,400 40,100 20,100 43,700 20,300 7,600 15,800 115,800 40,700 38,500 36,600 184,800 412,900 53,600 123,000 81,000 50,200 167,200 122,700 $ 41,100 $ 34,000 $ 38,800 $(31,700) 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 ", "question_description": "\"image\"image\"image\"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 and 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) Total Dirt Bikes Mountain Bikes Racing Bikes $ 924,000 $268,000 $405,000 $251,000 470,000 111,000 199,000 160,000 454,000 157,000 206,000 91,000 68,600 8,400 40,100 20,100 43,700 20,300 7,600 15,800 115,800 40,700 38,500 36,600 184,800 412,900 53,600 123,000 81,000 50,200 167,200 122,700 $ 41,100 $ 34,000 $ 38,800 $(31,700) *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?", "related_book": { "title": "Payroll Accounting", "isbn": "113396253X, 978-1133962533", "edition": "2013 edition", "authors": "Bernard J. Bieg, Judith A. Toland", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/263.jpg", "uri": "\/textbooks\/payroll-accounting-2013-edition-263", "see_more_uri": "" }, "free_related_book": { "isbn": "B072V98332", "uri": "\/textbooks\/reemoo-200pcs-fishing-rolling-ball-bearing-swivel-with-safety-snap-connector-fishing-accessories-2-4-6-8-10-b072v98332-134147", "name": "Reemoo 200pcs Fishing Rolling Ball Bearing Swivel With Safety Snap Connector Fishing Accessories 2 4 6 8 10", "edition": "" }, "question_posted": "2024-05-26 22:04:35", "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\/principles-communications-systems\/uniform-current-sheets-are-located-in-free-space-as-follows", "description": "Uniform current sheets are located in free space as follows: 8a z A\/m at y = 0, 4a z A\/m at y = 1, and 4a z A\/m at y = 1. 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