1 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 16.66 Variable sanfacturing and selling Contribution margin Advertising, traceable Depreciation of special recipent Total Fixed expen perating income() "Allocated on the basis of sales dollars 4110 15,7 33,7 15,500 Management is concemed 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 (disadvantagej per quarter of discontinuing the Racing Bikes 2. Should the production and sale of racing bikes be discontinued 3 Prepare a property formatted segmented income statement that would be more useful to management in assessing the long-nun profitability of the vanous product lines Complete this question by entering your answers in the tabs below. Should the production and sale of racing bikes be decontinued? OY NO