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The Regal Cycle Company manufactures three types of bicycles-o dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: OOK int int rences Mountain Total Racing Bikes Dirt Bike Bikes Sales $ 925,000 $ 268,000 $ 402,000 $ 255,000 Variable manufacturing and selling expenses 470,000 115,000 199,000 156,000 Contribution margin 455,000 153,000 203,000 99,000 Fixed expenses Advertising, traceable 70,100 8,900 40,300 20,900 Depreciation of special equipent 43,200 20.500 7, 300 15,400 Salaries of product-line managers 116,000 40.800 38,200 37,000 Allocated common fixed expenses. 185,000 53,600 80,400 51,000 Total fixed expenses 414,300 123.800 166,200 124,300 Net operating income (10) $ 40,700 $ 29,200 $ 36,800 $ (25,300) "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. Help Save & Exit Submit Check my word 1 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. Complete this question by entering your answers in the tabs below. 1 point Required 1 Required 2 Required 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 Totals Dirt Bikes Mountain Bike Racing Bikes Deferencer Contribution marginosa) Traonable and expenses Total traceable feed expenses Product line segmentarios) Not operating income foss) Required 2