Dirt Bikes Mountain Racing Bikes Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: $ 925,000 $262,000 $. 409,000 $ 254,000 460,000 112,000 192,000 156,000 98,000 465,000 150,000 217,0008 0 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 20,100 15,700 35,500 50,800 168,400120 $ 52,600 $ 28,100 $ 48,600 $(24,100) 40,300 7,400 38,900 81,800 68,900 8,500 43,600 20,500 114,90040,500 185,000 52,400 412,400 121,900 Total fixed expenses Net operating income (loss) 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 the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear 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 lon profitability of the various product lines Complete this question by entering your answers in the tabs below. Required 1 Required 2Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? inancial (disadvantage) per quarter