The Regal Cycle Company manufactures three types of bicycles - dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: acis Bikes Baket 410,000 $260,000 207.000 157.000 200.000 10,000 5azes Variable nanufacturing and selling expenses Contribution margin Pixed expenses Advertising, traceable Depreciation of special equipment Salaries of product line managers Allocated common fixed expenses Total fixed expenses Het operating income (loos) Dirt Total Bikes 5935,000 $265,000 5 482,000 118,000 453,000 167.009 70, 400 8,800 43,600 20.800 115,200 40,200 187.000 3.000 416712001221300 $36,800 $ 24,200 $ 49,900 20,700 7.100 15.700 33,100 36.900 82.000 $2,000 CODED 34.900522.300) "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? 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