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 BikesBikesBikes Total $929,800 $266,800 $ 488,0e0 $ 255,000 Variable manufacturing and selling expenses 471,800114,000203,00 154,990 458,900 152,00205,09 101,900 Sales Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated conmon fixed expenses 69,3008,700 48,100 28, 5ee 7,80015,90 114,780 48,780 38,180 35,900 43,900 20,280 185,8053,20081,60051,60 Total fixed expenses Net operating incone (loss) 413,700 122,800167,600123,300 $ 44,300 $ 29,200 $ 37,400 $(22,300) 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