PLEASE DO $1$ and $3$ Part $!!$ The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: TotalDirt BikesMountain BikesRacing BikesSales$ $931,000$$ $263,000$$ $409,000$$ $259,000$Variable manufacturing and selling expenses$460,000116,000191,000153,000$Contribution margin$471,000147,000218,000106,000$Fixed expenses: Advertising, traceable$69,3008,80040,30020,200$Depreciation of special equipment$43,90020,7007,70015,500$Salaries of product$-$line managers$116,50040,60038,90037,000$Allocated common fixed expenses$*186,20052,60081,80051,800$Total fixed expenses$415,900122,700168,700124,500$Net operating income $($loss$)$$ $55,100$$ $24,300$$ $49,300$$ $(18,500)*$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.