pls see attached Q 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: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 927, Gee $ 268, 090 $ 408, 980 $ 251, 090 Variable manufacturing and selling expenses 468, 090 113, 089 203, 090 152, 090 Contribution margin 459, 090 155,080 205,808 99, 090 Fixed expenses: Advertising, traceable 69, 308 8,609 40,309 20, 408 Depreciation of special equipment 43, Gee 20, 109 7,780 15, 208 Salaries of product- line managers 115,908 40, 680 38,780 36, 608 Allocated common fixed expenses* 185, 408 53, 680 81, 600 50, 208 Total fixed expenses 413, 608 122,90 168,306 122, 408 Net operating income (loss) $ 45, 408 $ 32, 109 $ 36,709 $ (23, 409) `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 1 Required 2 Required 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) 0 0 Traceable fixed expenses: Total traceable fixed expenses 0 0 Product line segment margin (loss) o S o $ 0 $ Net operating income (loss)