part a please. $56,500 is incorrect

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: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $928,000 $ 270,000 $ 406,000 $ 252,000 variable manufacturing and selling expenses 458,000 117,000 191,000 150,000 Contribution margin 470,000 153,000 215,000 102,000 Fixed expenses Advertising, traceable 69,400 8,200 40,900 20,300 Depreciation of special equipment 44,000 20,700 7,600 15,700 Salaries of product-line managers 114,500 40,300 38,900 35,300 Allocated common fixed expenses 185,600 54,000 81,200 50,400 Total fixed expenses 413,500 123,200 168,600 121,700 Bet operating income (10) $ 56,500 $ 29,800 $ 46,400 $ (19,700) "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 a Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantago) por quarter 56,500