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Mountain Total Dirt Bikes Diken Racing Bikes Sales $ 914,000 $ 261,000 $ 401,000 5 252,000 Variable manufacturing and selling expenses 454,000 111,000 191.000 152,000 Contribution margin 460,000 150,000 210,000 100,000 Fixed expenses Advertising, traceable 70,000 8,400 41,000 20,600 Depreciation of special equipment 43,300 20,700 7.400 15,200 salaries of product-line managers 115,000 40,200 38,400 36,400 Allocated common fixed expenses 182,800 52,200 BO, 200 50,400 Total fixed expenses 411, 100 121,500 167,000 122,600 Net operating income (loss) $ 48,900 $ 28,500 $ 43,000 $ (22,600) "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. es 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? Financial (disadvantaga) per quarter patract Required 2 >

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