Question
The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the
The Regal Cycle Company manufactures three types of bicyclesa 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 $ 914,000 $ 264,000 $ 400,000 $ 250,000 Variable manufacturing and selling expenses 485,000 118,000 207,000 160,000 Contribution margin 429,000 146,000 193,000 90,000 Fixed expenses: Advertising, traceable 69,100 8,100 40,200 20,800 Depreciation of special equipment 43,600 20,400 8,0
Please just answer the red mistake, Common fixed expenses
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: 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: Complete this question by entering your answers in the tabs below. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product linesStep by Step Solution
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