Check my work The Regal Cycle Company manufactures three types of bicycle-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Total $.911,000 472.000 446,000 Dirt Bikes 5.263,000 117,000 146,000 Mountain Dikes $ 401,000 202.000 199,000 Racing 5254,000 153,000 101,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertisins. traceable Depreciation of special equipment Series of product line managers Allocated common Fixed expenses Total Fixed expenses Net operating income (loss) 20,300 15,300 35,60 69,400 42,900 114,000 189,600 410,000 $ 35,200 8,600 20,300 40,700 52,600 122,200 $ 23,00 40,500 2,300 38,600 30,200 166,600 $ 32,400 122.000 3 (21,000) "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 property formatted segmented Income statement that would be more useful to management in assessing the long run profitability of the various product lines