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 5.925,000 472,000 453,000 Dirt Bikes $ 265,000 115,000 150,000 Mountain Bikes $400,000 200,000 205,000 Racing sker $ 251.000 153,000 90.000 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) 70,900 40,300 70,100 44,000 116,200 115,000 415, 300 $ 37,780 40,300 7,900 38,900 1,00 168,900 $36.100 20,00 15,200 37.000 50,200 123,200 5 (25,200 123,200 $ 26,500 'Allocated on the basis of solos dollars Management is concerned about the continued losses shown by the facing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikos 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 rocing 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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required Required 2 >