e 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:     Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 926,000   $ 266,000   $ 403,000   $ 257,000   Variable manufacturing and selling expenses   479,000     111,000     209,000     159,000   Contribution margin   447,000     155,000     194,000     98,000   Fixed expenses:                         Advertising, traceable   69,700     8,600     41,000     20,100   Depreciation of special equipment   44,100     20,900     7,500     15,700   Salaries of product-line managers   115,300     40,100     38,500     36,700   Allocated common fixed expenses*   185,200     53,200     80,600     51,400   Total fixed expenses   414,300     122,800     167,600     123,900   Net operating income (loss) $ 32,700   $ 32,200   $ 26,400   $ (25,900)       *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.   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 line

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: Total $ 917,000 460,000 457,000 Dirt Bikes $ 264,000 111,000 153,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses 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. 70,000 44,400 115,700 183,400 413,500 $ 43,500 Required 1 38,700 80,400 167,800 $ 43,200 Racing Bikes $ 251,000 158,000 93,000 20,600 15,600 36,400 50, 200 122,800 $ (29,800)

Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMusclePowerGymProForceSelling price per unit$141 $194 $281 Contribution margin per unit 42  76  57 Monthly sales volume—units 3,030  2,010  1,080 Fixed expenses per month  Total of $315,600Calculate the contribution margin ratio of each product b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's monthly break-even point in sales dollars. d. Calculate the firm's monthly operating income. e-1. Management is considering the elimination of the ProForce model due to its low sales volume and low contribution margin ratio. As a result, total fixed expenses can be reduced to $263,850 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. f-1. Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 492…

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) *Allocated on the basis of sales dollars. Total Dirt Bikes $ 920,000 469,000 451,000 $ 266,000 111,000 155,000 Mountain Bikes $ 402,000 200,000 Racing Bikes $ 252,000 158,000 202,000 94,000 69,200 8,400 40,400 20,400 44,000 21,000 7,700 15,300 114,700 40,300 38,600 35,800 184,000 53,200 80,400 50,400 411,900 122,900 167,100 121,900 $ 39,100 $ 32,100 $ 34,900 $ (27,900) Management is considering discontinuing the racing bikes. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage…

The following operating information reports the results of Ayayai Company’s production and sale of 12,500 air-conditioned motorcycle helmets last year. Based on early market forecasts, Ayayai expects the same results this year. Sales   $2,026,000   Variable manufacturing expenses   862,000   Fixed manufacturing expenses   279,000   Variable selling and administrative expenses   112,000   Fixed selling and administrative expenses   229,000   The American Motorcycle Club has offered to purchase 1,600 helmets at a price of $100 each. Ayayai has sufficient idle capacity to fill the order, which would not affect the company’s cost structure or regular sales.If Ayayai accepts this order, by how much will its income increase or decrease? Operating income will select an option                                                           decreaseincrease by $enter a dollar amount  .

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Coaster 750 Traveler 450 Total 1,200 Materials cost per bike Other costs: $ 638 $ 1,214 $ 313,800 396,800 261,800 354,800 Direct labor Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total $ 0

PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products:   1   Mountain Monster Desert Dragon 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00       In addition, the following sales unit volume information for the period is as follows:   Mountain Monster Desert Dragon Sales unit volume 4,800 4,650   Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…

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) *Allocated on the basis of sales dollars. Total $ 917,000 470,000 447,000 70,400 43,500 114,500 183,400 411,800 $ 35,200 Dirt Bikes $ 265,000 116,000 149,000 8,700 20,300 40,100 53,000 122,100 $ 26,900 Mountain Bikes $ 400,000 202,000 198,000 40,800 7,800 38,200 80,000 166,800 $ 31,200 Racing Bikes $ 252,000 152,000 100,000 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? 20,900 15,400 36,200 50,400 122,900 $ (22,900) Management is concerned…

Subject:- Account

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:     Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 925,000 $ 265,000 $ 402,000 $ 258,000 Variable manufacturing and selling expenses 466,000 111,000 195,000 160,000 Contribution margin 459,000 154,000 207,000 98,000 Fixed expenses:         Advertising, traceable 69,000 8,200 40,500 20,300 Depreciation of special equipment 43,200 20,100 7,700 15,400 Salaries of product-line managers 114,400 40,400 38,900 35,100 Allocated common fixed expenses* 185,000 53,000 80,400 51,600 Total fixed expenses 411,600 121,700 167,500 122,400 Net operating income (loss) $ 47,400 $ 32,300 $ 39,500 $ (24,400)   *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.…