The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sa

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The Regal Cycle Company Manufactures Three Types Of Bicycles A Dirt Bike A Mountain Bike And A Racing Bike Data On Sa 1 (49.99 KiB) Viewed 13 times

The Regal Cycle Company Manufactures Three Types Of Bicycles A Dirt Bike A Mountain Bike And A Racing Bike Data On Sa 2 (44.29 KiB) Viewed 13 times

The Regal Cycle Company Manufactures Three Types Of Bicycles A Dirt Bike A Mountain Bike And A Racing Bike Data On Sa 3 (44.54 KiB) Viewed 13 times

The Regal Cycle Company Manufactures Three Types Of Bicycles A Dirt Bike A Mountain Bike And A Racing Bike Data On Sa 4 (40.86 KiB) Viewed 13 times

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 Biken Total $ 919,000 Sales Dirt Bikes $ 267,000 115,000 152,000 Variable manufacturing and selling expenses Racing Bikes $ 252,000 153,000 $ 400,000 202,000 198,000 470,000 449,000 Contribution margin 99,000 Fixed expenses: Advertising, traceable 69,800 8,200 40,800 20,800 Depreciation of special equipment 44,800. 20,900 7,900 16,000 40,300 38,800 36,400 Salaries of product-line managers Allocated common fixed expenses. Total fixed expenses 115,500 183,800 413,900 53,400 80,000 50,400 122,800 167,500 123,600 Net operating income (loss) $ 35,100 $ 29,200 $ 30,500 $ (24,600) "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: 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
AHULOLE UTRE DOSIS UI adita uu 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? Required 2 >
Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or ne 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-rum 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 < Required 1 ONO Required 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) let operating income (loss) $ < Required 2