(Solved):The Regal Cycle Company manufactures three types of bicycles – a dirt bike, a mountain bike, and…

 

Question

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 $920,000 $267,000 $400,000 $253,000
Variable manufacturing and selling expenses 477,000 115,000 208,000 154,000
Contribution margin 443,000

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