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: Sales Variable manufacturing and selling expenses Contribution margin Fixed expensess Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Het operating income (loss) "Allocated on the basis of sales dollars. Total $918,000 $263,000 $402,000 $253,000 476,000 115,000 206,000 155,000 442,000 148,000 196,000 Dirt Mountain Racing Bikes Bikes Bikes 98,000 69,300 8,900 40,200 20,200 43,500 20,200 7,500 15,000 114,200 40,400 38,200 35,600 183,600 52,600 80,400 50,600 410,600 122,100 166,300 122,200 $ 31,400 $ 25,900 $ 29,700 $(24,200) 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