4 Print 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 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) "Allocated on the basis of sales dollars. Total $ 929,000 480,000 Dirt Bikes $263,000 115,000 449,000 148,000 Mountain Bikes $ 409,000 208,000 201,000 Racing Bikes $ 257,000 157,000 100,000 69,600 8,600 40,500 20,500 43,700 20,600 7,700 15,400 116,300 40,800 38,600 36,900 185,800 52,600 81,800 51,400 415,400 122,600 168,600 124,200 $ 33,600) $ 25,400 $32,400 $ (24,200) 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 property 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. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?