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 Bikes Mountain Racing Total Bikes Bikes Sales S 921,000 $267,000 $ 402,00e 252,000 Variable manufacturing and selling expenses 481,e114,000 210,000157,00 95,000 Contribution margin Fixed expenses: 440,000 153,000 20,400 15,900 35,900 50,400 412,100 _123,100166,480 122,60 S 27,900 29,900 25,600 $ (27,600) 69,300 43,600 20,600 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 40,500 7,100 38,400 eBook 8,400 115,00 4,70 184,20053,400 81460 Total fixed expenses Net operating income (loss) Hint 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? Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes No