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Business
Accounting
Dirt Mountain Racing Bikes $ 300,000 $ 90,000 $ 150,000 $ 60,000 Total Bikes 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 120,000 180,000 27,000 63,000 60,000 90,000 33,000 27,000 30,000 23,000 35,000 60,000 148,000 10,000 6,000 12,000 18,000 46,000 14,000 9,000 13,000 30,000 66,000 $ 32,000 $ 17,000 $ 24,000 $ (9,000) 6,000 8,000 10,000 12,000 36,000 Net operating income (loss)

Dirt Mountain Racing Bikes $ 300,000 $ 90,000 $ 150,000 $ 60,000 Total Bikes 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 120,000 180,000 27,000 63,000 60,000 90,000 33,000 27,000 30,000 23,000 35,000 60,000 148,000 10,000 6,000 12,000 18,000 46,000 14,000 9,000 13,000 30,000 66,000 $ 32,000 $ 17,000 $ 24,000 $ (9,000) 6,000 8,000 10,000 12,000 36,000 Net operating income (loss)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### The Regal Cycle Company Quarterly Report on Bicycle Sales and Expenses The Regal Cycle Company manufactures three types of bicycles: dirt bikes, mountain bikes, and racing bikes. Below is a detailed analysis of the sales and expenses for these products over the past quarter: #### Sales and Expense Breakdown - **Sales** - Total: $300,000 - Dirt Bikes: $90,000 - Mountain Bikes: $150,000 - Racing Bikes: $60,000 - **Variable Manufacturing and Selling Expenses** - Total: $120,000 - Dirt Bikes: $27,000 - Mountain Bikes: $60,000 - Racing Bikes: $33,000 - **Contribution Margin** - Total: $180,000 - Dirt Bikes: $63,000 - Mountain Bikes: $90,000 - Racing Bikes: $27,000 #### Fixed Expenses 1. **Advertising, Traceable** - Total: $30,000 - Dirt Bikes: $10,000 - Mountain Bikes: $14,000 - Racing Bikes: $6,000 2. **Depreciation of Special Equipment** - Total: $23,000 - Dirt Bikes: $6,000 - Mountain Bikes: $9,000 - Racing Bikes: $8,000 3. **Salaries of Product-line Managers** - Total: $35,000 - Dirt Bikes: $12,000 - Mountain Bikes: $13,000 - Racing Bikes: $10,000 4. **Allocated Common Fixed Expenses* (Based on Sales Dollars)** - Total: $60,000 - Dirt Bikes: $18,000 - Mountain Bikes: $30,000 - Racing Bikes: $12,000 - **Total Fixed Expenses** - Total: $148,000 - Dirt Bikes: $46,000 - Mountain Bikes: $66,000 - Racing Bikes: $36,000 - **Net Operating Income (Loss)** - Total: $32,000 - Dirt Bikes: $17,000 - Mountain Bikes: $24,000 - Racing Bikes: ($9,000) *The "Allocated Common Fixed Expenses" are distributed based on
Transcribed Image Text:### The Regal Cycle Company Quarterly Report on Bicycle Sales and Expenses The Regal Cycle Company manufactures three types of bicycles: dirt bikes, mountain bikes, and racing bikes. Below is a detailed analysis of the sales and expenses for these products over the past quarter: #### Sales and Expense Breakdown - **Sales** - Total: $300,000 - Dirt Bikes: $90,000 - Mountain Bikes: $150,000 - Racing Bikes: $60,000 - **Variable Manufacturing and Selling Expenses** - Total: $120,000 - Dirt Bikes: $27,000 - Mountain Bikes: $60,000 - Racing Bikes: $33,000 - **Contribution Margin** - Total: $180,000 - Dirt Bikes: $63,000 - Mountain Bikes: $90,000 - Racing Bikes: $27,000 #### Fixed Expenses 1. **Advertising, Traceable** - Total: $30,000 - Dirt Bikes: $10,000 - Mountain Bikes: $14,000 - Racing Bikes: $6,000 2. **Depreciation of Special Equipment** - Total: $23,000 - Dirt Bikes: $6,000 - Mountain Bikes: $9,000 - Racing Bikes: $8,000 3. **Salaries of Product-line Managers** - Total: $35,000 - Dirt Bikes: $12,000 - Mountain Bikes: $13,000 - Racing Bikes: $10,000 4. **Allocated Common Fixed Expenses* (Based on Sales Dollars)** - Total: $60,000 - Dirt Bikes: $18,000 - Mountain Bikes: $30,000 - Racing Bikes: $12,000 - **Total Fixed Expenses** - Total: $148,000 - Dirt Bikes: $46,000 - Mountain Bikes: $66,000 - Racing Bikes: $36,000 - **Net Operating Income (Loss)** - Total: $32,000 - Dirt Bikes: $17,000 - Mountain Bikes: $24,000 - Racing Bikes: ($9,000) *The "Allocated Common Fixed Expenses" are distributed based on
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