2 Sales Variable manufacturing and selling $928,000 $268,000 $401,000 $ 259,000 468,000 119,000 193,000 156,000 Contribution margin Fixed expenses: 460,000 149,000 208,01300 Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses. 70,000 8,600 40,500 20,900 43,800 20,800 7,900 15,100 115,900 40,700 38,700 36,500 51,800 415,300 123,700 167,300 124,300 44,700 25,300 40,700 $(21,300) 185,600 53,600 80,200 Total fixed expenses Allocated on the basis of sales dollars 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? 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-rum profitability of the various product lines. Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes