3. The Regal Cycle Company manufactures three types of bicyclesa 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 $924,000 $262,000 $409,000 $253,000 Variable manufacturing and selling expenses 470,000 117,000 202,000 151,000 Contribution margin 454,000 145,000 207,000 102,000 Fixed expenses: Advertising, traceable 68,800 8,400 40,200 20,200 Depreciation of special equipment 43,800 20,800 7,500 15,500 Salaries of product-line managers 115,900 40,700 38,500 36,700 Allocated common fixed expenses* 184,800 52,400 81,800 50,600 Total fixed expenses 413,300 122,300 168,000 123,000 Net operating income (loss) $40,700 $22,700 $39,000 $(21,000) *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. Salaries of product-line managers 115,900 40,700 38,500 36,700 Allocated common fixed expenses* 184,800 52,400 81,800 50,600 Total fixed expenses 413,300 122,300 168,000 123,000 Net operating income (loss) $40,700 $22,700 $39,000 $(21,000) *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. 2. Prepare a segmented income statement