expenses for the past quarter follow Dirt Mountain Racing Total Bikes Bikes Bikes $924,000 $266,000 $ 403,000 $ 255,000 117,000 207,000 159,000 441,000 149,000 196,000 96,000 483,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) 70,000 8,700 40,500 20,800 43,700 20,800 7,600 15,300 114, 200 40,800 38,300 35,100 184,800 53,200 80,600 51,000 412,700 123,500 167,000 122,200 $ 28,300 $ 25,500 $ 29,000 $(26,200) *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. 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 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. 0 0 0 Contribution margin (loss) Traceable fixed expenses: Complete this by your an in the tabs below. Required 1 Required 2 Required 3 0 Total traceable fixed expenses Product line segment margin (loss) 0 0 $ 0 0 0 $ $ 0 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Financial (disadvantage) per quarter Net operating income (loss) $ 0