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 Total Net operating income (loss) "Allocated on the basis of sales dollars. $925,000 471,000 $ 264,000 454,000 120,000 144,000 Dirt Bikes Mountain. Bikes: $ 409,000 197,000 Racing Bikes $ 252,000 154,000 212,000 98,000 69,400 8,600 40,300 20,500 43,000 20,500 7,200 15,300 114,400 40,100 38,200 36,100 185,000 52,800 81,800 50,400 411,800 122,000 167,500 122,300 $ 42,200 $ 22,000 $ 44,500 $ (24,300) 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 your answers in the tabs below. Required 11 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Net operating income (loss) Allocated on the basis of sales dollars. $ 42,200 $ 22,000 $ 44,500 $ (24,300) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether he line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear o Required: 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- profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO 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. Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 < Required 2 Required 3>