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Mathematics, 13.12.2021 20:40 ashleyy80

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$300,000$90,000$150,000$60,000

Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000

Contribution margin 180,000 63,000 90,000 27,000

Fixed expenses:

Advertising, traceable 30,000 10,000 14,000 6,000

Depreciation of special equipment 23,000 6,000 9,000 8,000

Salaries of product-line managers 35,000 12,000 13,000 10,000

Allocated common fixed expenses* 60,000 18,000 30,000 12,000

Total fixed expenses 148,000 46,000 66,000 36,000

Net operating income (loss)$32,000$17,000$24,000$(9,000)

*Allocated on the basis of sales dollars.

Management is concerned about the conti

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