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 $ 927,000 $ 269,000 $ 400,000 $ 258,000 Variable manufacturing and selling expenses 477,000 114,000 205,000 158,000 Contribution margin 450,000 155,000 195,000 100,000 Fixed expenses: Advertising, traceable 70,500 8,900 40,900 20,700 Depreciation of special equipment 43,100 20,400 7,400 15,300 Salaries of product-line managers 114,200 40,600 38,500 35,100 Allocated common fixed expenses*Footnote asterisk 185,400 53,800 80,000 51,600 Total fixed expenses 413,200 123,700 166,800 122,700 Net operating income (loss) $ 36,800 $ 31,300 $ 28