Saved Help 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: Total $.936,000 471,000 465.000 Dirt Bikes $ 268,000 114,000 154.000 Mountain Bikes $ 409,000 197,000 212,000 Racing Bikes $ 259,000 160,000 99,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,900 43,400 114,300 187,200 414,800 $ 50,200 8.900 20,100 40,900 53,600 123,500 $ 30,500 40,500 7,700 38,100 81,800 168, 100 $ 43,900 20,500 15,600 35,300 51,800 123,200 $ (24,200) "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 with findent nav tarn Alemanini thn Daring Di 12 HA Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Roquired 1 Required 2 > Print Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Ores ONO