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Can anyone help me with the error in red? The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a

Can anyone help me with the error in red?

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: 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.*Allocated on the basis of sales dollars.

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-run profitability of the various product lines.

Totals Dirt Bikes Mountain Bikes Racing Bikes
Sales $931,000 $267,000 $409,000 $255,000
Variable manufacturing and selling expenses 480,000 119,000 204,000 157,000
Contribution margin (loss) 451,000 148,000 205,000 98,000
Traceable fixed expenses:
Advertising, traceable 69,600 8,400 40,800 20,400
Depreciation of special equipment 44,600 20,800 8,000 15,800
Salaries of the product line managers 114,300 40,700 38,500 35,100
Total traceable fixed expenses 228,500 69900 87300 71,300
Product line segment margin (loss) 222,500 78,100 117,700 26,700
Common fixed expenses 44,600
Net operating income (loss) 177,900

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