The regal cycle company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. data on sales and expenses for the past quarter follow: total dirtbikes mountainbikesracingbikes sales $ 300,000 $ 90,000 $ 150,000 $ 60,000 variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 contribution margin 180,000 63,000 90,000 27,000 fixed expenses: advertising, traceable 30,000 10,000 14,000 6,000 depreciation of special equipment 23,000 6,000 9,000 8,000 salaries of product-line managers 35,000 12,000 13,000 10,000 allocated common fixed expenses* 60,000 18,000 30,000 12,000 total fixed expenses 148,000 46,000 66,000 36,000 net operating income (loss) $ 32,000 $ 17,000 $ 24,000 $ (9,000)*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: 1a. what is the impact on net operating income by discontinuing racing bikes? (decreases should be indicated by a minus sign.) 1b. should production and sale of the racing bikes be discontinued? yesno 2a. prepare a segmented income statement. 2b. would a segmented income statement format be more usable to management in assessing the long-run profitability of the various product lines. yesno