2 Sales 166 points Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable, Depreciation of special equipment Salaries of product-line managers Total fixed expenses Allocated common fixed expenses+ 20442 Net operating income (loss) "Allocated on the basis of sales dollars. Incorrect for the work you have completed so far. It does not indicate completion. Return to question Total $926,000 467,000 Dirt Bikes $ 267,000 115,000 Bikes $ 482,000 199,000 Racing Bikes $257,000 153,000 459,000 152, 203,000 104,089 70,200 8,908 40,300 21,000 43,900 28,800 7,400 15,700 115,400 40,200 38,800 36,400 185,200 53,400 80,400 51,400 414,708 123,388 166,900 124,500 $44,300 $ 28,708 136,100 $ (20,500) 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 quartel 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantage) per quarter $ 64,000 O