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2 5 ints 00:40:33 TB MC Qu. 11-04 (Static) Which of the following ... Which of the following statements is true? I. Consistency demands that a cost that is relevant in one decision be regarded as relevant in other decisions as well. II. Variable costs are always relevant costs in decisions.

TB MC Qu. 11-04 (Static) Which of the following ... Wich of the following statements is true? 1. Constutency domande that a cost that is relevant in one decision be regarded as relevant in other decisions as well 1. Variable costs are alwoys relewant costs in declsions. Exercise 11-2 (Algo) Dropping or Retaining a Segment [LO11-2] The Regav Cycle Company manutactutes three types of bicycles - a dirt bike, a mountain bike, and a rocing bike. Data on sales and expenses for the past quarter follow: Wilocated on the basis of sales dollars. Management is concerned about the continued iosses 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 facing bikes has no resale value and does not wear out. Required: 1. What is the tiriancial advantoge (disadvantage) per quarter of discontinuing the Racing Bikes? 2 Should the production and sole of racing bikes be discontinued? 3. Prepare o properly formatted segmented income statement that would be more useful to management in assessing the long.run protitsbility of tho warlous product lines. Complete this question by entering your answers in the tabs below

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