expenses for the past quarter follow: Dirt Total Bikes Mountain Bikes Racing Bikes 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) $ 928,000 $266,000 $ 403,000 $ 259,000 465,000 111,000 197,000 157,000 463,000 155,000 206,000 102,000 69,100 8,400 40,300 43,600 20,300 115,100 40,300 20,400 7,400 15,900 38,100 36,700 185,600 59,200 50,600 51,800 413,400 122,200 106,400 124,000 $ 49,000 $ 32,800 $ 39,600 $(22,800) "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-run profitability of the various product lines. Complete this question by entering vour answers in the tabs below. 1 of 9 Next > Check my w