The Regel Cycle Company manufactures three type of bicycle-a dit bike, a mountain bike, and a toong bike Data on sales and experies for the past quarter Follow Ditt Mountain Raong Total Bike si Sales 5928,000 $ 200,000 $400.000 250.000 Variatie manufacturing and sellingen 475.000 115.000 200.000 151.000 Contribution margin 45.000 197.000 105.000 Fixed expenses Advertising raceable 69,700 8.500 40,000 20,800 Degradation of specialment 43,800 29,900 7.700 15,200 Sanies of producine managers 115.300 40.500 38,300 26 500 Alocid common and per 165.000 53200 61200 51700 Total od expenses 414 400 123,100 107.000 123100 Net Operating income 52000 S000 101 *Allocated on the basis of sales dotars Morapment is concerned about the continued as shown by the racing bikes and wants a recommendation as to whorer or not the line had to decorred. The specialment used to produce mong bikes has no rosale value and does not wear out Required: ta Wiene impact on net operating income by contring racing hikes? (Decrees should be indicated by a minus sign) Tout if Racing Bike Are Dropped Dierence Net Operating income Increase Current Total Contributon margin oss) Fixed on Tocal de Not operating income foss) 16. Should production and sale of the racing bikes be discontinued? Yes NO 2a. Prepare a segmented income statement. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Net operating income (loss) 2b. Would a segmented income statement format be more usable to management in assessing the long-run profitability of the various product lines. Yes Na