sales $ 926,000 $ 268,000 $ 401,000 $ 257,000 variable manufacturing and selling expenses 471,000 112,000 203,000 156,000 contribution margin 455,000 156,000 198,000 101,000 fixed expenses: advertising, traceable 69,600 8,500 40,900 20,200 depreciation of special equipment 44,300 20,600 7,900 15,800 salaries of product-line managers 113,700 40,200 38,200 35,300 allocated common fixed expenses* 185,200 53,600 80,200 51,400 total fixed expenses 412,800 122,900 167,200 122,700 net operating income (loss) $ 42,200 $ 33,100 $ 30,800 $ (21,700) *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. 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.