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 Net operating income (loss) 'Allocated on the basis of sales dollars. Total $ 930,000 Dirt Bikes Mountain Bikes $ 405,000 Racing Bikes $ 266,000 $ 259,000 474,000 117,000 202,000 155,000 456,000 149,000 203,000 104,000 70,000 8,600 40,500 20,900 43,300 20,900 7,100 15,300 116,400 41,000 38,600 36,800 186,000 53,200 81,000 51,800 415,700 123,700 167,200 124,800 $ 40,300 $ 25,300 $ 35,800 $ (20,800) 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? Required Required 2 >