8.400 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 Mountain Total Dirt Bikes Bikes Racing Bikes Sales 3922,000 $ 263.000 $ 109,000 $ 250,000 variable manufacturing and willing expenses 465.000 116.000 199,000 154,000 Contribution margin 459.000 147.000 216,000 96,000 Fedexpenses Advertising, traceable 69,400 40,400 20.600 Depreciation of special equipment 4), 700 20,700 7,700 15.300 Salaries of product line managers 116.500 40,900 38,500 36,600 Allocated common fixed expenses 184,400 52.600 B1100 50.000 Yotal fixed expenses 122.600 165/700 122,700 et operating Inco (los) $ 24,400 5 (26,700) "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: 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 414,000 Complete this question by entering your answers in the tabs below. Required Tequired) What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes Required 2 > 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 long run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (los) Net operating income (101)