Firefox File Edit View History Bookmarks Tools Window Help 0 46% Q 8 Tue No uMass: 02074197 Eva georvelyr X B Blackboard - UMass Boston x M Question 1 - Homework 6 - Con X C & https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fumb.umasson Homework 6 i Saved Save & Exit Submit Check my work 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: 4 Mountain point Total Dirt Bikes Bikes Racing Bikes Sales $ 935, 000 267, 000 $ 409, 000 $ 259, 000 Variable manufacturing and selling expenses 473, 000 117, 000 200, 000 156, 000 eBook Contribution margin 462, 000 150 , 000 209, 000 103, 000 Fixed expenses: Hint Advertising, traceable 70, 000 9,000 10, 300 20, 700 Depreciation of special equipment 43 , 100 20 , 400 7,300 15, 400 Print Salaries of product-line managers 114, 100 40 , 400 38, 306 35, 400 Allocated common fixed expenses* 187 , 000 53 , 400 81, 800 51 , 800 References Total fixed expenses 414 , 200 123, 200 167 , 700 123, 300 Net operating income ( loss) $ 47, 800 $ 26, 800 $ 41, 300 $ (20, 300) *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. Gra 20 44 DD A F6 F7 F8 F10 F2 F11 F3 2 3 W E R U O S D F G H K