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:

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 ints Dirt Mountain Racing Total Bikes Bikes $.932,000 $269,000 $ 400,000 $ 254,000 471.000 113,000 201,000 157.000 461,000 156,000 288,000 97,000 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) 69,200 3.600 40,400 20,200 42,800 20,300 7.200 15,300 114,400 40,300 38,300 35,800 186 400 59,00 81.500 50, 100 412,600 123.000 167.700 122 100 543,200 $ 33,000 $40,300 $(25,100) "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 valde 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 seginented income statement that would be more useful to management in assessing the long run