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: Total S 919,000 475,000 444,000 Dirt Bikes $ 263,000 117,000 146, DOE Mountain Bikes $ 402,000 201,000 201,006 Racing Bikes $ 254,900 157,900 97,000 Print 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) 70,500 43,400 115, 100 183,800 412,800 $ 31,200 8,800 20,209 40,600 52,600 122,209 $ 23,800 40,900 7,800 38, 100 80,400 167,200 $ 33, 800 20,800 15,400 36,400 50,800 123,400 $ (26,400) *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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes