ces 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: Total Dirt Bikes Sales $922,000 Variable manufacturing and selling expenses $ 261,000 482,000 118,000 Contribution margin 440,000 143,000 Mountain Bikes $ 402,000 209,000 193,000 Racing Bikes $ 259,000 155,000 104,000 Fixed expenses: Advertising, traceable 69,000 8,600 40,200 20,200 43,000 20,400 7,200 15,400 113,400 40,200 38,000 35,200 184,400 52,200 80,400 51,800 409,800 121,400 165,800 122,600 $ 30,200 $ 21,600 $ 27,200 $ (18,600) 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. 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 profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 iontage per quarter of discontinuing the Racing Bikes?