total dirt bikes mountain bikes racing bikes sales $ 926,000 $ 266,000 $ 405,000 $ 255,000 variable manufacturing and selling expenses 468,000 110,000 203,000 155,000 contribution margin 458,000 156,000 202,000 100,000 fixed expenses: advertising, traceable 70,400 8,900 41,000 20,500 depreciation of special equipment 43,500 20,700 7,700 15,100 salaries of product-line managers 114,300 40,600 38,400 35,300 allocated common fixed expenses* 185,200 53,200 81,000 51,000 total fixed expenses 413,400 123,400 168,100 121,900 net operating income (loss) $ 44,600 $ 32,600 $ 33,900 $ (21,900) *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.