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nta Total Bikes Bikes 927,00 $268,000 406,0 253,000 Variable manufacturing and selling expenses459,000 114,00 193,00 152,000 101,800 Sales Contribution margin Fixed expenses: 468,00 154,000 213,000 10 points Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,700 9,000 44020,300 15,700 113,800 40,300 38,40 35,100 44,100 20,900 7,580 185,400 53,600 81,200 Total fixed expenses Net operating income (loss) 413,000 123,800 167,500 121,700 55,00030,20045,500 $(20,700) eBook Hint located on the basis of sales dollars. anagement is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not e line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. References Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 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. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Should the production and sale of racing bikes be discontinued? OYes ONo Required 1 Required 3 >

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