Please explain and show calculations. Thank you.

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 MountainRacing Bikes TotalBikesBikes $928,000 $267,000 406,000 $ 255,000 154,000 461,000 152,800208,000 11,600 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: 198,000 467,000 115,000 70,000 8,700 40,500 20,800 42,80020,200 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 4015,200 35,500 7,460 39,800 81,20051,666 114,700 40,200 185,60053,480 413,100 122,50 168,100122,500 Total fixed expenses Net operating income (loss) $ 47,900 29,500 $ 39,90 (21,500) 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 managemenkdn assessing the long-run profitability of the various product lines