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) "Allocated on the basis of sales dollars. Total Dirt Bikes Bikes $917,000 $ 262,000 $ 402,000 Check my work Racing Bikes $253,000 466,000 117,000 196,000 153,000 451,000 145,000 206,000 100,000 70,000 8,700 40,900 20,400 43,300 20,600 7,600 15,100 114,500 41,000 38,200 35,300 183,400 52,400 80, 400 50,600 411,200 122,700 167,100 121,400 $ 39,800 $22,300 $ 38,900 $ (21,400) 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.