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The Regal Cycle Company manufactures thuee types of bicyckes a dit bike, a mountain bike, and a racing bike. Dita on ules and expenses for
The Regal Cycle Company manufactures thuee types of bicyckes a dit bike, a mountain bike, and a racing bike. Dita on ules and expenses for the past quarter follows. Aliocated on the basis of sales dollars Managriment is concemnd about the continaed lonses shown by the cacing bhes and wants a fecommeritation as to whether or nox the line should be discaetinued. The special equipment issed to produce racing base hos no resole value and does not wear out. Required: 1. What is the finariciat advantage (disadvantage) per quarter of discontinuing the feacing Hikres? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segriented income statement thot would be moce useful to manogement in asueseing the lone rum pratitability of the various product lines. Complete this question by entering your amswers in the tabs below. Prepare a property formatted segmented income statement that weeld be micee usetul to maatagement in aicessing the long run proffiabity Management is concerred about the continued los sos shown by the racing bikes and wants a recommendation as to whether or nat the line should be discontinued. The special equipment used to produce racing bbes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontining the Racing Bies? 2. Should the production and sale of racing bikes be discontentied? 3. Prepare a propely formatted segmented income statement that would be mare usehd to management in assessing the kong run profitability of the various product lines. Complete this question by enterind vour answers in the talis below. What is the financial advantage (disadvantage) per quarter of discontinuing the facine Bikes? 2. What is the financial advintage (disadvantage) per quarter at discontinumg the Racine Bakes? 2. Should the production and sale of maing bikes be discontinued? Prepare a propecly formatted segmented mcome statement that would be more useful to managennent in assessing the long rum profitability of the warious product lines Complete this question by enterine yoar answers in the tabs befow. of the vacious preduct lines
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