Y external browser=0&launchUrl=https%253A%252F%252Films.mheducation.com%252Fmghmiddleware%2 ell Learning Evo... VitalSource Books... Handshake Blaw exam 3 mut Business Law 1 Te Section 5.3-Mat MARK 4360 Com... Chapters 5, 6 & 13 Recap Seved C VMware Help Save E 12 8.37 points 01:43:30 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line nanagers Allocated common fixed expenses Total fixed expanses Net operating income (loss) +Book "Allocated on the basis of sales dollars. Hint Total $ 926,000 469,000 457-000 Dirt Bikes $262,000 133,000 149,000 Mountain Bikes $410,000 199,010 211,000 Racing Bikes $ 254,000 157,000 97,000 69,200 8,100 40,300 20,800 43,500 20,500 7,300 15,700 113,500 40,400 38,000 35,100 185,200 52,400 82,000 50,800 411,400 121,400 167,600 172,400 $45,600 $27,600 $ 43,400 (25,400) Port References 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 31 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantage) per quarter Required 2> CH 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) "Allocated on the basis of sales dollars. Total $ 926,000 469,000 Dirt Bikes B $ 262,000 $ 41 113,000 19 457,000 149,000 21 69,200 8,100 4 43,500 20,500 113,500 40,400 3 185,200 52,400 8 411,400 121,400 16 $ 45,600 $ 27,600 $ 4 Management is concerned about the continued losses shown by the racing bikes and wants the line should be discontinued. The special equipment used to produce racing bikes has n Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bik 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 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 Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing th profitability of the various product lines. Sales Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 < Required 2 Required 3