Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and penses for the past quarter follow: Mountain Racing Bikes Total Dirt Bikes Bikes Sales $ 920,000 $ 262,000 $ 402,000 $ 256,000 Variable manufacturing and selling expenses 482,000 120,000 209,000 153,000 Contribution margin 438,000 142,000 193,000 103,000 Fixed expenses Advertising, traceable 68,800 8,600 40,100 20,100 Depreciation of special equipment 42,900 20, 100 7.400 15,400 Salaries of product-line managers 115,100 40,300 38,200 36,600 1 located common fixed expenses 184,000 52,400 80,400 51,200 total fixed expenses $10.800 121,400 166, 100 123, 300 Bet operating Income (los) $ 27.200 $ 20.600 $ 26,900 $(20.300) "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 property formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Comelete this question by enterina vour answers in the tabs below Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes O No Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)