Outdoor Luggage Corporation produces hard-sided luggage for sports equipment. Financial data for three of the corporation's most popular products appear below.

	Total			Ski Guard			Golf Guard			Fishing Guard
Sales	$	935,000		$	266,000		$	410,000		$	259,000
Variable manufacturing and selling expenses		473,000			114,000			199,000			160,000
Contribution margin		462,000			152,000			211,000			99,000
Fixed expenses:
Advertising, traceable		69,700			8,500			40,300			20,900
Depreciation of special equipment		43,600			20,600			7,500			15,500
Salaries of product-line managers		115,100			40,500			39,000			35,600
Allocated common fixed expenses*		187,000			53,200			82,000			51,800
Total fixed expenses		415,400			122,800			168,800			123,800
Net operating income (loss)	$	46,600		$	29,200		$	42,200		$	(24,800)

*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.