Please don't give image format www.prispewing www.wym wwwmum as myprofitability of the various product lines.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Should the production and sale of racing bikes be discontinued?OYesONOShow Transcribed TextComplete this question by entering your answers in the tabs below.Contribution margin (loss)Traceable fixed expenses:Total traceable fixed expensesProduct line segment margin (loss)< Required 1Required 1 Required 2 Required 3Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-runprofitability of the various product lines.Net operating income (loss)Totals< Required 2Required 3 >Dirt Bikes Mountain Bikes Racing BikesRequired 3 >minyume The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales andexpenses for the past quarter follow:SalesVariable manufacturing and selling expensesContribution marginFixed expenses:Total$.930,000469,000461,00069,30043,000Dirt Bikes$ 270,000115,600186,000413,900$ 47,100114,000156,000Advertising, traceable.Depreciation of special equipmentSalaries of product-line managersAllocated common fixed expensesTotal fixed expensesNet operating income (loss)*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 notthe line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.8,80020,20040,70040,2007,20038,70080,200166,300$ 32,300 $ 39,700MountainBikes$ 401,000195,000206,00054,000123,700Required:1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?Racing Bikes$ 259,000160,000.99,00020,30015,600Required 1Required 2 Required 3What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?36,20051,800123,900$ (24,900)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-runprofitability of the various product lines.Complete this question by entering your answers in the tabs below.

Name: Please don't give image format www.prispewing www.wym wwwmum as myprof
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Please don't give image format www.prispewing www.wym wwwmum as myprofitability of the various product lines.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Should the production and sale of racing bi

A product of a company may be discontinued because it is not performing to expectations and may even…

Business

Accounting

Complete this question by entering your answers in the tabs below. 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. Contribution margin (loss) Traceable fixed expenses: Tatal meas Totals Dirt Bikes Mountain Bikes Racing Bikes

Complete this question by entering your answers in the tabs below. 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. Contribution margin (loss) Traceable fixed expenses: Tatal meas Totals Dirt Bikes Mountain Bikes Racing Bikes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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:
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: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 926,000 $ 269,000 $ 405,000 $ 252,000 Variable manufacturing and selling expenses 468,000 111,000 206,000 151,000 Contribution margin 458,000 158,000 199,000 101,000 Fixed expenses: Advertising, traceable 69,800 8,800 40,700 20,300 Depreciation of special equipment 43,700 20,400 7,400 15,900 Salaries of product-line managers 114,200 40,700 38,400 35,100 Allocated common fixed expenses* 185,200 53,800 81,000 50,400 Total fixed expenses 412,900 123,700 167,500 121,700 Net operating income (loss) $ 45,100 $ 34,300 $ 31,500 $ (20,700) *Allocated on the basis of sales dollars. 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:…
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: Sales Variable manufacturing and selling expenses Contribution margin Total $ 922,000 466,000 456,000 Dirt Bikes $ 269,000 116,000 153,000 70,300 43,500 114,700 184,400 412,900 $ 43,100 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. 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. 8,400 20,200 Complete this question by entering your answers in the tabs below. Mountain Bikes $ 402,000 192,000 210,000 40, 100 53,800 122,500 $ 30,500 Racing Bikes…
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: Dirt Mountain Bikes Racing Bikes Total Bikes $ 923, e00 $263,000 $ 467, e00 456, e00 Sales 409, 090 $ 251,880 197,000 212,000 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 115,000 148,000 155,000 96,000 69, 300 42, 700 114, 600 184, 600 411, 200 $ 44,800 $ 26, 300 $ 8,500 20,300 40, 300 52,600 121,700 40,200 7,200 38,500 81,800 167,700 20, 600 15,200 35,800 50, 200 121, 800 44,300 $(25, 808) Net operating income (loss) *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…
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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) $ $ $ Net operating income (loss)
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: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 929,000 $ 264,000 $ 409,000 $ 256,000 Variable manufacturing and selling expenses 463,000 113,000 191,000 159,000 Contribution margin 466,000 151,000 218,000 97,000 Fixed expenses: Advertising, traceable 68,800 8,100 40,200 20,500 Depreciation of special equipment 43,500 20,400 7,100 16,000 Salaries of product-line managers 114,400 40,700 38,200 35,500 Allocated common fixed expenses* 185,800 52,800 81,800 51,200 Total fixed expenses 412,500 122,000 167,300 123,200 Net operating income (loss) $ 53,500 $ 29,000 $ 50,700 $ (26,200) *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 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: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 929,000 $ 269,000 $ 407,000 $ 253,000 Variable manufacturing and selling expenses 468,000 115,000 196,000 157,000 Contribution margin 461,000 154,000 211,000 96,000 Fixed expenses: Advertising, traceable 70,200 9,000 40,500 20,700 Depreciation of special equipment 43,500 20,500 7,300 15,700 Salaries of product-line managers 114,500 40,200 38,400 35,900 Allocated common fixed expenses* 185,800 53,800 81,400 50,600 Total fixed expenses 414,000 123,500 167,600 122,900 Net operating income (loss) $ 47,000 $ 30,500 $ 43,400 $ (26,900) *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 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: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 923,000 $ 266,000 $ 405,000 $ 252,000 Variable manufacturing and selling expenses 473,000 111,000 205,000 157,000 Contribution margin 450,000 155,000 200,000 95,000 Fixed expenses: Advertising, traceable 69,200 8,400 40,600 20,200 Depreciation of special equipment 43,400 20,700 7,200 15,500 Salaries of product-line managers 114,600 40,600 38,100 35,900 Allocated common fixed expenses* 184,600 53,200 81,000 50,400 Total fixed expenses 411,800 122,900 166,900 122,000 Net operating income (loss) $ 38,200 $ 32,100 $ 33,100 $ (27,000) *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 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: Total $ 932,000 471,000 461,000 Dirt Bikes $ 265,000 118,000 147,000 69,700 44,000 115,700 186,400 415,800 $ 45,200 Mountain Bikes 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. 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. $ 408,000 200,000 208,000 Racing Bikes $ 259,000 153,000 106,000 9,000 40,300 20,400 20,900 8,000 15,100 40,700 38,400 36,600 53,000 81,600 51,800…
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: Dirt Racing Bikes Mountain Total Bikes Bikes Sales Varlable manufacturing and selling expenses $300,000 $90,000 $150,000 $60,000 120,000 27,000 60,000 33,000 ......... Contribution margin.. 180,000 63,000 90,000 27,000 Fxed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers. Allocated common fixed expenses Total foxed expenses.. Net operating income (loss) .. 10,000 6,000 30,000 23,000 36,000 60,000 14,000 9,000 13,000 30,000 6,000 8,000 10,000 12,000 12,000 18,000 148,000 46,000 66,000 36,000 32,000 $17.000 24,000 (0.000) "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…
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. Dire Bikes Bikes $ 921, 000 s265,0 s 404,000 S 252,000 Hountain Racing Bikes Total sales variable manufacturing and selling expenses 447,000 150,e0 16,0 contribution nargin Fixed expenses: Advertising, traceable Depreciation of special equipnent salaries of product-1ine managers Allocated comnon fixed expenses Total fixed exxpenses 101,000 8,900 44,00e 20,see 114,300 40,100 184, 200 53,800 412,Gee 1 00 40,400 7,500 38,100 se, see 166,s00 122,600 24,400 $ 26,100 S 29,200 $(21,600) 20,00 16,00e 35,400 50,400 70,100 Net operating 1ncone (loss) "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…
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: Total DirtBikes Mountain Bikes RacingBikes Sales $ 926,000 $ 266,000 $ 403,000 $ 257,000 Variable manufacturing and selling expenses 479,000 111,000 209,000 159,000 Contribution margin 447,000 155,000 194,000 98,000 Fixed expenses: Advertising, traceable 69,700 8,600 41,000 20,100 Depreciation of special equipment 44,100 20,900 7,500 15,700 Salaries of product-line managers 115,300 40,100 38,500 36,700 Allocated common fixed expenses* 185,200 53,200 80,600 51,400 Total fixed expenses 414,300 122,800 167,600 123,900 Net operating income (loss) $ 32,700 $ 32,200 $ 26,400 $ (25,900) *Allocated on the basis of sales dollars. Management is…