The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

	Total	Dirt Bikes	Mountain Bikes	Racing Bikes
Sales	$ 924,000	$ 266,000	$ 401,000	$ 257,000
Variable manufacturing and selling expenses	487,000	120,000	210,000	157,000
Contribution margin	437,000	146,000	191,000	100,000
Fixed expenses:
Advertising, traceable	68,900	8,100	40,300	20,500
Depreciation of special equipment	43,200	20,500	7,200	15,500
Salaries of product-line managers	115,800	40,500	38,400	36,900
Allocated common fixed expenses*	184,800	53,200	80,200	51,400
Total fixed expenses	412,700	122,300	166,100	124,300
Net operating income (loss)	$ 24,300	$ 23,700	$ 24,900	$ (24,300)

*Allocated on the basis of sales dollars.

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.

What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

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.

	Totals	Dirt Bikes	Mountain Bikes	Racing Bikes
Sales
Variable manufacturing and selling expenses
Contribution margin (loss)
Traceable fixed expenses:
Total traceable fixed expenses
Product line segment margin (loss)		$	$	$
Net operating income (loss)	$