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Sales $ 929,000 $ 264,000 $ 406,000 $ 259,000 variable manufacturing and selling expenses 478,000 114,000 206,000 158,000 contribution margin 451,000 150,000 200,000 101,000 fixed expenses: advertising, traceable 69,300 8,300 40,600 20,400 depreciation of special equipment 42,900 20,300 7,200 15,400 salaries of product-line managers 115,700 40,100 38,900 36,700 allocated common fixed expenses* 185,800 52,800 81,200 51,800 total fixed expenses 413,700 121,500 167,900 124,300 net operating income (loss) $ 37,300 $ 28,500 $ 32,100 $ (23,300) 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?
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Sales $ 929,000 $ 264,000 $ 406,000 $ 259,000 variable manufacturing and selling expenses 478,000 11...
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