questions 1, 2, and 3 at the bottom please. thank you!!

to Decision Making EXERCISE 12-20. or Retaining a Segment L012-2 e Company manufactures three types of bicycles- a dirt bike, a niountain bike, and ata on sales and expenses for the past quarter follow: SbBen Eycle Com racing bike. Data on s Total Dirt Bikes $90,000 Mountain Bikes $150,000 Racing Bikes $300,000 $60,000 Sales ... Variable manufacturing and selling expenses .. Contribution margin... Fixed expenses: Advertising, traceable... 120,000 180,000 27,000 63,000 60,000 90.000 33,000 27.000 6,000 8,000 Depreciation of special equipment .. Salaries of product-line managers... Allocated common fixed expenses.... Total fixed expenses. Net operating income (loss)........ 30,000 23,000 35,000 60,000 148,000 $ 32,000 10,000 6,000 12,000 18,000 46,000 $17,000 14,000 9,000 13,000 30,000 66,000 $ 24,000 10.000 12,000 36.000 $ (9,000) Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a rec mendation 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: What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Should the production and sale of racing bikes be discontinued? Prepare a properly formatted segmented income statement that would be more useful to man avement in assessing the long-run profitability of the various product lines