Total $ 266,000 113,000 Dirt Bikes Mountain Bikes $ 406,000 203,000 Racing Bikes $ 252,000 455,000 153,000 203,000 153,000 99,000 69,300 9,000 40,100 20,200 43,200 20,200 7,800 15,200 114,300 40,400 38,400 35,500 184,800 53,200 81,200 50,400 411,600 122,800 167,500 121,300 $ 43,400 $ 30,200 $ 35,500 $ (22,300) Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses $ 924,000 469,000 Net operating income (loss) "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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?