The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike.

	Total			Dirt Bikes			Mountain Bikes			Racing Bikes
Sales	$	928,000		$	268,000		$	405,000		$	255,000
Variable manufacturing and selling expenses		479,000			115,000			206,000			158,000
Contribution margin		449,000			153,000			199,000			97,000
Fixed expenses:
Advertising, traceable		69,400			8,200			40,600			20,600
Depreciation of special equipment		43,800			20,200			7,700			15,900
Salaries of product-line managers		115,200			40,200			38,300			36,700
Allocated common fixed expenses*		185,600			53,600			81,000			51,000
Total fixed expenses		414,000			122,200			167,600			124,200
Net operating income (loss)	$	35,000		$	30,800		$	31,400		$	(27,200)

Required:

1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes?

3. Prepare a properly formatted segmented income statement