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	$ 265,000	$ 401,000	$ 255,000
Variable manufacturing and selling expenses	459,000	111,000	194,000	154,000
Contribution margin	462,000	154,000	207,000	101,000
Fixed expenses:
Advertising, traceable	70,400	8,500	40,900	21,000
Depreciation of special equipment	43,500	20,900	7,400	15,200
Salaries of product-line managers	115,400	41,000	38,600	35,800
Allocated common fixed expenses*	184,200	53,000	80,200	51,000
Total fixed expenses	413,500	123,400	167,100	123,000
Net operating income (loss)	$ 48,500	$ 30,600	$ 39,900	$ (22,000)

*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.

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.