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: Mountain Sales Total Dirt Bikes Bikes Racing Bikes $ 928,000 Variable nanufacturing and selling expenses $ 268,000 $ 409,000 $ 251,080 461,000 112,600 191,00 158,080 Contribution margin 467,000 156.ece 218,eee 93,000 Fixed expenses Advertising, traceable 69,700 8.400 41,600 20,380 Depreciation of special equipment 43,500 29,800 7.500 15,200 Salaries of product-Line managers 115,200 40,600 38,500 36,100 Allocated common fixed expenses. 185,600 53,600 81,800 50,200 Total fixed expenses 414,800 123,400 168,800 121,800 Net operating incone (loss) $ 53,000 $ 32,600 $ 49,200 $ (28.800) *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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > 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 $ 928,000 461,000 467,000 Dirt Bikes $ 268,000 112,000 156,000 Mountain Bikes $ 409,000 191,000 218,000 Racing Bikes $ 251,000 158,000 93,000 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) 69,700 43,500 115,200 185,600 414.000 $ 53,000 8,400 20,800 40,600 53,600 123,400 $ 32,600 41,000 7,500 38,500 B1,800 168,800 $ 49,200 20,300 15,200 36,100 50,200 121,800 5 (28,800) *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 hos 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. Required: Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO 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: LS Total $928,000 461,900 467,600 Dirt Bikes $ 268,000 112,000 155,000 Mountain Bikes 5 409,000 191,000 218.000 Racing Bikes $ 251,00 158,000 93.ee eBook Sales Variable manufacturing and selling expenses Contribution margin Fixed expensest Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated conmon fixed expenses. Total fixed expenses Net operating incone (loss) 69,700 43,500 115,200 185,600 414,000 $ 53,000 8,400 20,880 40,600 $3,600 123,400 $ 32,600 41, cee 7.See 38,500 81.800 168,800 $ 49,200 20,300 15,200 36,100 50,200 121, Bee $ (28,800) Hint @ "Allocated on the basis of sales dollars. Fles prit 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. Theference 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (los) Traceable fixed expenses Total traceable foxed expenses Product line segment margin (5) Net operating income foss) Required 2 He