The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow. Dirt Mountain Racing Total Bikes Bikes Bikes Sales $ 300,000 $90,000 $150,000 $ 60,000 Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 Contribution margin 180,000 63,000 90,000 27,000 Fixed expenses : Advertising, traceable 30,000 10,000 14,000 6,000 Depreciation of special equipment 23,000 6,000 9,000 8,000 Salaries of product-line managers 35,000 12,000 13,000 10,000 Allocated common fixed expenses 60,000 18,000 30, see 12,000 Total fixed expenses 148,000 46,000 66,000 36,000 Net operating income (loss) $ 32,000 $17,000 $ 24,000 s (0,000) "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. D 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 300,000 $ 90.000 Variable manufacturing and selling expenses 120.000 27.000 Contribution margin (loss) 180.000 63,000 0 Traceable foxed expenses Advertising, traceable 30,000 10,000 Depreciation of special equipment 23,000 6,000 Salaries of the product line managers 35,000 12,000 Total traceable foxed expenses 88,000 28.000 0 0 Product line segment margin (loss) 92,000 $ 35,000 $ 0 $ 0 Common fixed expenses 60,000 $ 32.000 Net operating income (loss)