Chapter 11 Homework i Saved Help Save & Exit Submit Check my work 2 run profitability Of the various product lines. Complete this question by entering your answers in the tabs below. 1.32 points Required 1 Required 2 Required 3 8 03:24:09 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? eBook Hint Required 2 > Print Financial advantage (disadvantage) per quarter References Financial advantage per quarterChapter 11 Homework i Saved Help Save & Exit Submit Check my work 2 Required 1 Required 2 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. 1.32 Totals Dirt Bikes points Mountain Bikes Racing Bikes 03:23:56 Contribution margin (loss) 0 0 0 Traceable fixed expenses: eBook Hint Print References Total traceable fixed expenses 0 0 0 Product line segment margin (loss) 0 $ 0 $ 0 $ 0 Net operating income (loss) $ 0Chapter 11 Homework 0 Saved Help Save& Exit Submit A The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: 132 . . M\".\"\"i\" . . ' , Total Dirt Bikes Bikes Racing Bikes poms Sales 3 914,666 $ 263,666 $ 461,666 $ 256,666 7, Variable manufacturing and selling expenses 464,066 117,066 197,066 156,666 [ E 03;\";2] Contribution margin 456,066 146,066 204,666 166,666 \\7/ Fixed expenses: Advertising, traceable 69,666 8,866 46,666 26,266 Depreciation of special equipment 42,766 26,266 7,166 15,466 EBDOk Salaries o-F productline managers 115,066 46,966 38,966 35,266 Allocated common 'Fixed expenses* 182,866 52,666 86,266 56,666 H'm Total Fixed expenses 416,166 122,566 166,866 126,866 Print Net operating income (loss) 5 39,966 $ 23,566 5 37,266 $ (26,866) RE'E'EWES '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