$\backslash$table$[[,$Mountain,,$],[$Sales$,$Total,Dirt Bikes,Bikes,Racing Bikes$],[$Variable manufacturing and selling expenses,$$921,000,$$$264,000,$$$405,000,$$$252,000],[$Contribution margin,$465,000,115,000,192,000,158,000],[$Fixed expenses:,$456,000,149,000,213,000,94,000],[$Advertising$,$ traceable,,,,$],[$Depreciation of special equipment,$69,100,8,200,40,700,20,200],[$Salaries of product$-$line managers,$43,100,20,200,7,200,15,700],[$Allocated common fixed expenses$*,115,200,40,700,38,700,35,800],[$Total fixed expenses,$184,200,52,800,81,000,50,400],[$Net operating income $($loss$),411,600,121,900,167,600,122,100]]$

$*$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:

What is the financial advantage $($disadvantage$)$ per quarter of discontinuing the Racing Bikes?

Should the production and sale of racing bikes be discontinued?

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 $2$

What is the financial advantage $($disadvantage$)$ per quarter of discontinuing the Racing Bikes?

$1$ of $6$