Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the regal cycle company manufactures three types o

The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and...

70.2K

Verified Solution

Question

Accounting

The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 920,000 $ 261,000 $ 407,000 $ 252,000 Variable manufacturing and selling expenses 472,000 119,000 194,000 159,000 Contribution margin 448,000 142,000 213,000 93,000 Fixed expenses: Advertising, traceable 69,800 8,900 40,400 20,500 Depreciation of special equipment 42,900 20,200 7,300 15,400 Salaries of product-line managers 114,300 40,500 38,700 35,100 Allocated common fixed expenses* 184,000 52,200 81,400 50,400 Total fixed expenses 411,000 121,800 167,800 121,400 Net operating income (loss) $ 37,000 $ 20,200 $ 45,200 $ (28,400) *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. 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider a 0.20 M NH4Cl aqueous solution. Rank the following species in the solution from highest...

Chemistry
Q

Read paragraph 5 But talk can have great value you have to think of it...

Basic Math
Q

Use the slope-intercept form to graph the equation 4x - 5y = 20.

Algebra
Q

Blake contributed $422 at the end of every 3 months into...

Accounting
Q

At the beginning of 2020 , your company buys a $32,000...

Accounting
Q

Production workers for Baird Manufacturing Company provided 4,200 hours of labor in January and 3,000...

Accounting
Q

Gem Company's manufacturing facility was destroyed by a flood. The facility's adjusted basis was $665,000,...

Accounting
Q

Which of the following statements is true about profitability ratios? a. They measure the ability...

Accounting
Q

Which of the following statements regarding the proceeds from issuing bonds is NOT true? a....

Accounting
Q

Steves Inc. recently reported earnings-per-share of $2.39 and the shares are currently selling for 19.37....

Finance
Q

The Dakota Corporation had a 2021 taxable income of $28,500,000 from operations after all operating...

Accounting
Q

Panosoft is interested in measuring its overall cost of capital. The company is in the...

Finance