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 Sale Varisle wanufacturing and selling expenses Contribution sang Dirt Mountain Racing Total Bikes bikes Bikes $ 916,000 $263,000 $ 401,000 5 252,000 468,000 11.000 205,000 150, 44,000 150.000 195.000 102,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers ocated the expenses Total Fixed expenses at operatine loco (los) 69,900 3,500 40,000 20,600 41,400 20,200 15,000 114,500 40,200 38,900 35,400 183,200 32,600 5,200 50,400 411.00 121,500 167,700 121,300 $ 37,000 $. 23,500 $25,300 $(19,800) "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 tine 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 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 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable foxed expenses Product line segment margin (loss) Net operating income (oss)