Check my work 1 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: 0.16 points Total $ 930,000 481,000 449,000 Dirt Bikes $ 263,000 113,000 150,000 Mountain Bikes $ 407,000 210,000 197,000 Racing Bikes $ 260,000 158,000 102,000 eBook 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) 70,200 43,900 115,800 186,000 415,900 $ 33, 100 8,600 20,700 40,500 52,600 122,400 $ 27,600 40,700 7,500 38,900 81,400 168,500 $ 28,500 20,900 15,700 36,400 52,000 125,000 $ (23,000) Hint *Allocated on the basis of sales dollars. Print 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. References Required: 1. What is the ncial advantage (disadvantage) per quarter of discontinuing the Racing es? 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?