2 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. 071 points Dirt Mountain Racing Total Bikes Bikes Bikes $922,000 $262,000 $402,000 $ 258,000 485,000 118,000 208,000 159,000 437,000 144,000 194,000 99.000 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 tixud expenses Net operating Income (103) 70,700 8,900 40,900 20,900 44,600 20,900 7,800 15,900 116,600 40,200 38,600 35,800 184,400 52,400 80,400 51.600 410,300 122,400 167.700 120.200 122,700 $ 21,600 $ 26,300 $(25,200) "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 Ine 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 Bike? 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 Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the lo run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: 0 0 0 0 0 0 0 Total traceable foxed expenses Product line segment margin (loss) 0 0 $ 0 $ 0 $ 0 Net operating income (loss) $