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	$	922,000		$	263,000		$	403,000		$	256,000
Variable manufacturing and selling expenses		472,000			116,000			201,000			155,000
Contribution margin		450,000			147,000			202,000			101,000
Fixed expenses:
Advertising, traceable		69,100			8,500			40,300			20,300
Depreciation of special equipment		43,200			20,300			7,800			15,100
Salaries of product-line managers		115,700			40,000			38,900			36,800
Allocated common fixed expenses*		184,400			52,600			80,600			51,200
Total fixed expenses		412,400			121,400			167,600			123,400
Net operating income (loss)	$	37,600		$	25,600		$	34,400		$	(22,400)

*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.

Required:

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.