Help Save & Exit Submit 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 ed Mountain Total Sales Dirt Bike Racing Bikes $ 914,000 $ 262,000 $ 401,000 $ 25,000 Variable manafecturing and selling expenses 468.000 117.000 194,000 152.000 Contribution margin 145,000 207.000 199,000 Fixed expenses Advertising, traceable 70.000 8,600 40.600 20,000 Depreciation of special equipment 43,300 20,200 7,200 15,900 Salaries of product line managers 114.900 40.300 38,500 36,000 Alloonted common fixed expenses 102,00 52,400 80.200 50.200 Total fixed expenses 411.000 121.500 166.600 122900 Het operating Incore (los) $35.000 1 23.500 $ 40,400 528.900) "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 produce ng bikes has no resale value and does not wear out Required: 1 What is the financial advantage disadvantagel 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. lala la attailan hunt n +ha a sila