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The Regsl Cycle Compony manufsctures three types of bicycles-s dirt blke, s mountein bike, snd s rscing bike. Dsts on ssles and expence: for the
The Regsl Cycle Compony manufsctures three types of bicycles-s dirt blke, s mountein bike, snd s rscing bike. Dsts on ssles and expence: for the post querter follow: "Allocsted on the bos's of ssles dallsw. Monsgement is concemed sbout the continued losses shown by the recing blkes snd wants s recommendotion sa to whether or not the line should be diacontinued. The speciol equipment used to produce rocing blkes hos no resole vslue snd does not weor out. Required: 1. What is the fingncisl sdvsntsge (diasdvsntsge) per qusrter of discontinuing the Rocing Blkes? 2 Should the production snd sale of racing bikes be discontinued? 3. Prepore s properly formetted segmented Income ststement thst would be more useful to mansgement in assessing the long-run arofitsblity of the vorious product lines. Complete this question by entering your answers in the tabs below. Prepare a properly farmatted segmented income statement thst would be more usctul to management in assessing the long-run proftability of the vanous product lines
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