Businesses conduct profitability analyses regularly using absorption costing (for long-term analysis) and variable costing (for short-term analysis). These analyses help leadership decide whether to discontinue a line or devote more resources to producing and marketing a product line.Perform profitability analysis on the three segments below and provide recommendations based on your outcomes.Segment Revenue Income AmortizationSnow Mobiles $5,000 $1,500 $525All-Terrain Vehicles $1,000 $320 $112Dirt Bikes $500 $175 $53Totals $6,500 $1,995 $690Calculate the Contribution Margin for each segment.Calculate the Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the Dirt Bike segment. Show your work.Calculate EBITDA as a percentage of revenue for the Dirt Bike segment. Show your work.Based on your calculations, provide recommendations to leadership regarding discontinuing or shifting the product mix.Your discussion answers will be graded based on the rubric. See the syllabus if you need to refresh your memory on what is required
