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 lines.

Dirt Mountain Racing Sales Variable manufacturing and selling Total Bikes Bikes Bikes 929,000 $266,000$404,000 $ 259,000 479,000 117,000 210,000 152,000 expenses Contribution margin Pixed expenses: 450,000 149,000 194,000 107,000 Advertising, traceable Depreciation of special equipment Salaries of product-line nanagers Allocated comnon fixed expenses 70,300 8,800 40,900 20,600 44,600 20,800 7,900 15,900 115,400 40,800 38,400 36,200 185,800 53,200 80,800 51,800 16,100 123,600 168,000 124,500 33,900 25,400 26,000 $(17,500) otal fixed expenses Set operating income (loss)