Please help on 1 and 3, thank you!

Return to questi 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: Mountain R . B'k 16 66 Total Dirt Bikes Bikes ac1ng 1 es '_ Sales $ 918,686 5 264,666 S 463,660 $ 251,686 points Variable manufacturing and selling expenses 479,666 119,666 268,666 152,666 Contribution margin 439,666 145,666 195,666 99,666 Fixed expenses: Advertising, traceable 69,366 8,366 46,666 26,466 Depreciation of special equipment 43,166 26,266 7,366 15,666 Salaries of product-line managers 115,666 46,666 38,366 36,766 Allocated common fixed expenses\" 183,666 52,866 86,666 56,266 Total 'Fixed expenses 411,666 121,366 166,866 122,966 Net operating income (loss) $ 28,666 $ 23,766 $ 28,266 $ (23,966) \"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. 9 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the nancial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 'Financial advantage (disadvantage) per quarter a '15 31,000 a ' Retur 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. Totals Dirt Bikes Mountain Racing Bikes Bikes 16.66 Sales points Variable manufacturing and selling expenses V Contribution margin (loss) 0 0 0 0 Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses O 0 O O Product line segment margin (loss) O $ 0 0 $ O Common fixed expenses v Net operating income (loss) $ 0