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: Total $ 924,000 462,000 462,000 Dirt Bikes $ 264,000 114.000 150,000 Mountain Bikes $ 403,000 191,000 212,000 Racing Bikes $ 257,000 157.000 100,000 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 (los) 69,300 43,800 114,400 184,800 412,300 5.49,700 8,300 20,900 40,900 52,800 122,900 $ 27,100 40,900 7.100 38,300 80,600 166.900 $ 45,100 20,100 15,800 35,200 51,400 122.500 $ (22,500) "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 management in assessing the long-run profitability of the various product lines