The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a...
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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: Mountain Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) "Allocated on the basis of sales dollars. Total Dirt Bikes $ 934,000 472,000 462,000 $ 269,000 110,000 159,000 Bikes $ 410,000 208,000 202,000 Racing Bikes $ 255,000 154,000 101,000 69,000 8,500 40,300 20,200 43,500 20,600 7,300 15,600 115,800 40,400 38,600 36,800 186,800 53,800 82,000 51,000 415,100 123,300 168,200 123,600 $ 46,900 $ 35,700 $ 33,800 $ (22,600) Management is considering discontinuing the racing bikes. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Black . 1:57:04 Book Management is considering discontinuing the racing bikes. The special equipment used to produce racing bikes has 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? Complete this question by entering your answers in the tabs below. Hint Print Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? erences 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 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) "Allocated on the basis of sales dollars. Total Dirt Bikes $ 934,000 472,000 462,000 $ 269,000 110,000 159,000 Bikes $ 410,000 208,000 202,000 Racing Bikes $ 255,000 154,000 101,000 69,000 8,500 40,300 20,200 43,500 20,600 7,300 15,600 115,800 40,400 38,600 36,800 186,800 53,800 82,000 51,000 415,100 123,300 168,200 123,600 $ 46,900 $ 35,700 $ 33,800 $ (22,600) Management is considering discontinuing the racing bikes. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Black . 1:57:04 Book Management is considering discontinuing the racing bikes. The special equipment used to produce racing bikes has 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? Complete this question by entering your answers in the tabs below. Hint Print Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? erences
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