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.TotalsDirt BikesMountain BikesRacing BikesContribution margin (loss)Traceable fixed expenses:Total traceable fixed expensesProduct 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 andexpenses for the past quarter follow:DirtMountainRacingTotalBikesBikesBikesSales$ 926,000 $270,000 $ 405,000 $ 251,000Variable manufacturing and selling466,000117,000198,000151,000expensesContribution margin460,000153,000207,000100,000Fixed expenses:Advertising, traceableDepreciation of special equipmentSalaries of product-line managersAllocated common fixed expenses*40,5007,30038,70081,00020,50015,90035,60050,200122,20069,60043,700115,000185,2008,60020,50040,70054,000Total fixed expenses413,500123,800167,500Net operating income (loss)$ 46,500 $ 29,200 $ 39,500 $ (22,200)*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 notthe line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.

Income statement: When all the costs and expenses are subtracted one by one from the sale, then if…

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) $

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) $

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

Tennair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Evans Equipment Sales revenue Rogers Refrigeration $ 160,000 61,000 Cost of goods sold General selling costs $ 229,000 102,000 37,000 23,800 28,500 General administrative costs 17,850 Cost-driver data used by the firm and traceable to Evans and Rogers are: Customer Activity Sales activity Order taking Special handling Special shipping Customer Activity Sales activity Order taking Special handling Special shipping Cost Driver Sales visits Sales orders Units handled Shipments Evans Equipment 12 visits 31 orders 460 units. 33 shipments Pool Rate $ 970 278 44 460 Rogers Refrigeration 9 visits 36 orders 410 units 44 shipments Required: A. Perform a customer profitability analysis for Tennair. Compute the gross margin and operating income on transactions related to Evans Equipment and Rogers Refrigeration.
Please help me
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $168,200 to $201,800. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,800, and insurance on delivery equipment $1,400. Prepare a monthly selling expense flexible budget for each $11,200 increment of sales within the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) > > > > > $ LA FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2020 LA tA A LA LA [
if you don't know the answer don't answer it plz ...
Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in each independent case. Case A Case B Case C Case D Unit Sales Sales revenue Variable cost per unit Contribution margin Fixed Costs Net income $ Unit contribution margin $ Break-even point (units) Margin of safety (units) $ 1,000 $20,000 $10 $7,000 $ $ 800 $ $1 $800 $ $500 $ $ $12 $ $ $80,000 $ $ 4,000 300 $60000 $15 2,000 1,000
answer both parts correctly
Please proper solution
please answer completely and correctly in text form with all working describe each and every step with explanation computation formula
Please do not give solution in image format thanku