Please review and complete the attached question

Question 37: 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 Mountain Racing Total Bikes Bikes Bikes Sales $300,000 $90,000 $150,000 $60,000 Variable manufacturing and selling expenses 120,000 27,000 60 000 33,000 Contribution margin 180,000 63,000 90 000 27,000 Fixed expenses: Advertising, traceable 30,000 10,000 14,000 6,000 Depreciation of special equipment . . 23,000 6,000 9,000 8,000 Salaries ofpi'oduct-line managers . 35,000 12,000 13,000 10,000 Allocated common xed expenses*........... . 60,000 18,000 30 000 12,000 Total xed expenses.......................................... 148,000 46,000 66 000 36,000 Net operating income (loss) $ 32,000 $ 17,000 $ 24,000 $0,000) *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. Required: 1. Should production and sale of the racing bikes be discontinued? Explain. Show computations to support your answer. 2. Recast the above data in a format that would be more usable to management in assessing the long-run protability of the various product lines