Exercise $6-2($Algo$)$ Dropping or Retaining a Segment $[$LO$6-2]$

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:

$\backslash$table$[[,$Total,Dirt Bikes,Mountain Bikes,Racing Bikes$],[$Sales$,$$ $927,000,$$ $269,000,$$ $402,000,$$ $256,000],[$Variable manufacturing and selling expenses,$471,000,112,000,205,000,154,000],[$Contribution margin,$456,000,157,000,197,000,102,000],[$Fixed expenses:,,,,$],[$Advertising$,$ traceable,$69,900,9,000,40,400,20,500],[$Depreciation of special equipment,$44,200,21,000,7,200,16,000],[$Salaries of product$-$line managers,Ds $115,000,40,000,38,600,36,400],[$Allocated common fixed expenses$*,185,400,53,800,80,400,51,200],[$Total fixed expenses,$414,500,123,800,166,600,124,100],[$Net operating income $($loss$),$$$41,500,$$$33,200,$$$30,400,$$$(22,100)$