Please do not give solution in image format ? And Fast answering please and explain proper steps by Step. 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!Advertising, traceableDepreciation of special equipment.Salaries of product-line managersAllocated common fixed expensesTotal fixed expensesNet operating income (loss)'Allocated on the basis of sales dollars.Show Transcribed TextTotal$920,000475,000445,00069,30043,200114,600184,000411,100$ 33,900Complete this question by entering your answers in the tabs below.Contribution margin (loss)Traceable fixed expenses:Dirt Bikes$ 266,000117,000149,000Total traceable fixed expensesProduct line segment margin (loss)Complete this question by entering your answers in the tabs below.Net operating income (loss)8,30020,60040,50053,200122,600$ 26,400Management 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.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?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.MountainBikes$ 400,000204,000196,000Totals< Required 240,1007,30038,00080,000165,400$ 30,600Required 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.Racing Bikes$ 254,000154,000100,00020,90015,30036,10050,800123,100$ (23,100)Required 3>Dirt Bikes Mountain Bikes Racing Bikes expenses for the past quarter follow.SalesVariable manufacturing and selling expensesContribution marginFixed expenses:Total$ 920,000475,000445,00069,30043,200114,600184,000411,100$ 33,900Dirt Bikes.$ 266,000117,000149,0008,30020,60040,50053,200122,600$ 26,400Required 1MountainBikes$ 400,000204,000196,000Complete this question by entering your answers in the tabs below.Advertising, traceableDepreciation of special equipmentSalaries of product-line managers iAllocated common fixed expenses.Total 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.40,1007,30038,00080,000165,400$ 30,600Racing Bikes$ 254,000154,000100,000Required 2 Required 3What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?20,90015,30036,10050,800Required: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?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.123,100$ (23,100)

The decision of discontinuing a division is based on avoidable costs of that division and loss of…

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 Fixed expenses! Advertising, traceable Depreciation of special equipment. Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) Show Transcribed Text Total $920,000 475,000 445,000 69,300 43,200 114,600 184,000 411,100 $ 33,900 Complete this question by entering your answers in the tabs below. Contribution margin (loss) Traceable fixed expenses: Dirt Bikes $ 266,000 117,000 149,000 Total traceable fixed expenses Product line segment margin (loss) 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. Complete this question by entering your answers in the tabs below. 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? 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. 8,300 20,600 40,500 53,200 122,600 $ 26,400 $ 30,600 Mountain Bikes $ 400,000 204,000 196,000 Totals < Required 2 40,100 7,300 38,000 80,000 165,400 Ć 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. Racing Bikes $ 254,000 154,000 100,000 20,900 15,300 36,100 50,800 123,100 $ (23,100) Required 3 > Dirt Bikes Mountain Bikes Racing Bikes

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q