Question: Need help with this one work Help Save& Ext Subm Check my work The Regal Cycle Company manufactures three types of bicycles a dirt bike,
work Help Save& Ext Subm 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 925,800 $268,00e s 4e5,800 $252,000 variable sanufacturing and selling expenses 475,000 118,00 202,00 155,ee0 Contribution sargin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,900 ,200 4,800 2.9ee 7,70015, see 15,400 40,9938,680 35,980 185,00 53,681,000 se,400 43,7802e,58e Total fixed expenses Net operating income (loss) $ 36,000 $ 26,800 $ 14,900 $(25,780) Allocated on the basis of sales dollars Management is concemed about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the ine should be discontnued. The special equipment used to produce racing bikes hs no resale value and does not wear out Required: 1 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes
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