Translate YouTube h Hulu | Watch N M myMU Account % HubSpot Academy a Prime Video - Am.. Chapter #13 - Quiz i Saved Help Save & Exit Submit 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 Total Dirt Bikes Bikes Racing Bikes Sales $ 934, 000 $ 268,000 $ 408, 000 $ 258 , 000 Variable manufacturing and selling expenses 477, 000 117, 000 201,000 159, 000 Contribution margin 457, 000 151, 000 207, 000 99 , 000 Skipped Fixed expenses : Advertising, traceable 68, 600 8 , 300 10, 200 20, 100 Depreciation of special equipment 44 , 200 20 , 600 7, 700 15 , 900 Salaries of product-line managers 114, 800 40 , 700 39 , 000 35, 100 eBook Allocated common fixed expenses* 186 , 800 53 , 600 81 , 600 51 , 600 Total fixed expenses 414 , 400 123, 200 168, 500 122, 700 Hint Net operating income (loss) $ 42, 600 $ 27 , 800 $ 38, 500 $ (23, 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? 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? 1 of 5 Next > Mc Prev B......: Graw Hill MacBook Air DII DD A 898Chapter #13 - Quiz i Saved Help Save & Exit 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 Total Dirt Bikes Bikes Racing Bikes Sales $ 934, 000 $ 268, 000 $ 408,000 $ 258, 000 Variable manufacturing and selling expenses 477,000 117, 000 201, 000 159 , 000 Contribution margin 457 , 000 151, 000 207, 000 99 , 000 Skipped Fixed expenses: Advertising, traceable 68 , 600 8 , 300 40, 200 20, 100 Depreciation of special equipment 44, 200 20 , 600 7, 700 15 , 900 Salaries of product-line managers 114 , 800 40, 700 39,000 35 , 100 eBook Allocated common fixed expenses* 186, 800 53, 600 81, 600 51 , 600 Total fixed expenses 414, 400 123 , 200 168 , 500 122 , 700 Hint Net operating income (loss) $ 42,600 $ 27, 800 $ 38,500 $ (23, 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? 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 Should the production and sale of racing bikes be discontinued? Yes ONO Mc Prev 1 of 5 Next > graw MacBook AirChapter #13 - Quiz i Saved Help Save & Exit 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. Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Hint 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 (loss) 0 0 0 Traceable fixed expenses: Total traceable fixed expenses 0 0 Product line segment margin (loss) o $ o $ o $ 0 Net operating income (loss) $ 0 Required 2 Required 3 Mc Graw Hill MacBook Air