2 Check my work The Regal Cycle Company manufactures three types of blcycles-a dirt bike, a mountain bike, and a racing bike Data on sales and expenses for the past quarter follow Dirt Mountain Racing Total Bikes Bikes Bikes $916,000 $263, e8e $ 400,000 $ 253,000 462,00 114,000 193,000 155, eee 454,00 149. Baa 207,000 98, eee Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,zee 3,700 40,400 20,100 43,900 20, 300 7,500 15,800 116, see 40,600 39,000 36,900 183,200 52.600 Be, 000 50,660 412,800 122,200 167,200 123.400 $41,200 $ 26,800 $ 39,800 $(25,400) int "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 w Prev