Chapter $11$ Graded Homework$*$

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Exercise $11-2($Algo$)$ Dropping or Retaining a Segment $[$LO$11-2]$

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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 sales and expenses for the past quarter follow:

$\backslash$table$[[$eBook$,,$Total,Dirt Bikes,$\backslash$table$[[$Mountain$],[$Bikes$]],$Racing Bikes$],[,,$$ $922,000,$$ $264,000,$$ $402,000,$$ $256,000],[$Hint$,$Sales,$ $461,000,112,000,196,000,153,000],[,$Variable manufacturing and selling expenses,$461,000,152,000,206,000,103,000],[$Print$,$Contribution margin,,,,$],[$References$,$Fixed expenses:,$69,400,8,400,40,400,20,600],[$Advertising$,$ traceable,$44,100,20,900,7,400,15,800],[$Depreciation of special equipment,$114,100,40,100,38,100,35,900],[$Salaries of product$-$line managers,$184,400,52,800,80,400,51,200],[$Allocated common fixed expenses$*,412,000,122,200,166,300,123,500],[$otal fixed exp,$ $49,000,$$ $29,800,$$ $39,700,$$ $(20,500)$