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	$ 921,000	$ 261,000	$ 403,000	$ 257,000
Variable manufacturing and selling expenses	481,000	113,000	208,000	160,000
Contribution margin	440,000	148,000	195,000	97,000
Fixed expenses:
Advertising, traceable	69,000	8,100	40,300	20,600
Depreciation of special equipment	44,000	20,400	7,800	15,800
Salaries of product-line managers	114,300	40,200	38,000	36,100
Allocated common fixed expenses*	184,200	52,200	80,600	51,400
Total fixed expenses	411,500	120,900	166,700	123,900
Net operating income (loss)	$ 28,500	$ 27,100	$ 28,300	$ (26,900)

*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:

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. (I need help with this table)