The Regal Cyce 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. Dirt Mountain Racing Total Bikes Bikes Bikes $ 929,880 $269, Bee $ 407,eee $ 253,899 474,000 115.690 199, eee 160,000 455,600 154.ee 208,000 93,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated conton fixed expenses Total fixed expenses Net operating income (loss) 69,560 8,700 40 180 20,5ee 44,600 20,800 7,900 15,9ee 115,280 40,300 38,300 36,600 185,888 53. Bee 81,400 58,600 415 100 123,6ee 167,900 123,600 $ 39,900 $ 30,400 $ 40,100 $(30,600) "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-un profitability of the various product lines Complete this question by entering your answers in the tabs below. Required: Required Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 >