EXERCISE 13-2 Dropping or Retaining a Segment (L02] The Regal Cycle Company manufactures three types of bicycles- a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Bikes Mountain Bikes Racing Bikes Total $300,000 $90,000 $150,000 $60,000 33,000 27,000 Sales Variable manufacturing 60,000 90,000 14,000 9,000 13,000 30,000 66,000 and selling expenses ...120,000 27,000 63,000 Fixed expenses: 6,000 8,000 10,000 12,000 36,000 Net operating income (oss)..32.000 17.000 24.000 $(9.000 30,000 23,000 35,000 60,000 10,000 6,000 12,000 18,000 46,000 Depreciation of speciat Salaries of product-line Allocated common fixed expanses. Allocated on the basis of sales doliars