au 2 Check my work 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 . Dirt Mountain Racing Total Bikes Bikes Bikes $927,000 $269,00 $ 401,000 5 257,000 481,000 115,000 209,000 158,000 446,00 154,000 193,000 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 fixed expenses Net operating Incone (loss) 68,600 8,200 40,200 20,200 43,800 20,00 7.800 15,200 115,200 40,100 38,400 36,700 185,400 53,800 80,200 51.400 413,000 122,900 166,600 123,50 $ 33,00 $ 31,100 $ 26,400 $(24,500) rence "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 Check my work 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 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 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? Reged Required 2 > 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 0 0 0 0 Contribution margin (loss) Traceable foxed expenses 0 0 0 0 Total traceable forced expenses Product line segment margin (loss) 0 $ 0 $ 0 S 0 Net operating income (loss) $ 0