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, Dirt Mountain Racing Total Bikes Bikes Bikes $928,000 $265,000 $409,000 $ 254,000 470,000 113,000 197,000 160,000 458,000 152,000 212,000 94,000 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) 69,200 8,300 40,600 20,300 44,000 20.900 7,400 15,700 115,300 40,200 38,200 36,900 185,600 53,000 81,800 50.800 414,100 122,400 168,000 123,700 $ 43,900 $ 29,600 $ 44,000 $129,700) "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 run profitability of the various product lines. Complete this question by entering your answers in the tabs below. 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 a profitability of the various product lines. 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 run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable foxed expenses: 0 0 0 Total traceable foed expenses Product line segment margin (loss) 0 0 0 0 0 $ 0$ 0 $ 0