Check 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 Total Bikes Bikes Bikes Sales $ 300,000 $90,000 $150,000 $60,000 Variable manufacturing and selling expenses 120.000 27,000 68.000 33,00 Contribution margin 180.000 63,000 90,000 27.000 Fixed expenses Advertising, traceable 30,000 10,000 14,000 6,00e Depreciation of special equipment 23.000 6,000 9,000 8,000 Salaries of product-line managers 35,00 12,000 13,000 18,000 Allocated common fixed expenses 60,000 18.000 30,000 12,000 Total Fixed expenses 145,000 46,000 66,000 36,000 Operating Income (loss) $ 32,000 $ 17,900 $ 24,890 (9,000 ucated 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 nor wear out Required: 1 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage per quarter Required 2 > Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be profitability of the various product lines. 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? OYes No Required 3 >