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 Bikes Total Bikes Bikes 10 points Sales $922,000 $265,000 406,000 251,000 474,000 113,000 208,000 153, 000 98,000 20,800 Variable manufacturing and selling expenses Contribution margin Fixed expenses: 448,000 152,000 198,000 eBook Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* 8,400 20,600 114,800 40,000 53,000 412,900 122,000 40,600 7,900 38,000 81,200 167,700 69,800 15,400 36,800 50,200 123,200 35,100 30,000 30,300 (25,200) Hint 43,900 Print 184,400 Total fixed expenses Net operating income (loss) References 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