Outdoor Luggage Corporation produces hard-sided luggage for sports equipment Financial data for three of the corporation's most popular products appear below. Ski Guard Golf Guard Fishing Total Guard Sales $ 929,000 $265,000 S 409,000 $ 255,000 Variable manufacturing and selling 470,000 118,000 201,000 151,000 expenses Contribution margin 459,000 147,000 208,000 104,000 Fixed expenses Advertising, traceable 69,700 9,000 40,400 20,300 Depreciation of special equipment 43,900 20,300 7,800 15,800 Salaries of product-line managers 113,300 40,000 38, 100 35,200 Allocated common fixed expenses 185,800 53,000 81,800 51,000 Total fixed expenses 412,700 122,300 168, 100 122,300 Net operating income (105) $ 46,300 $ 24,700 $ 39,900 $(18,300) 'Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the fishing guards and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce fishing guards has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guard model? 2. Should the production and sale of fishing guards 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, Required 1 Required 2 Required 3 ences What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guards? Required Required 2 > Required 1 Required 2 Required 3 Should the production and sale of fishing guards be discontinued? You NO Required 1 Required 2 Required 3 Prepare a properly formatted segmented Income statement that would be more useful to management in assessing the run profitability of the various product lines. Totals Ski Guards Golf Guards Fishing Guards es Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (los) Net operating income (loss