Just looking for requirement 1

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 Bikes Total Bikes Sales Variable manufacturing and $924,000 $262,000 $ 406,000 $ 256,000 205,000 154,000 201,000102,000 20,500 15,700 36,400 51,200 123,800 470,000 111,000 454,000151,000 8, 300 43,300 20,200 115,200 40,600 184,800 52,400 412,300 121,500 selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special 40,200 7,400 38,200 81,200 167,000 69,000 equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 41,700 29,500 $ 34,000 $(21,800) 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 1Required 2Required 3