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 $927.000 464,000 463.000 Dirt Bikes $209,000 115,000 154,000 Bike $ 405.000 198,000 207.000 Racint Bike? $ 253,000 151.000 102.000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expert Advertisint. traceable Depreciation of special equipment Salaries of product-line maters Allocated on fixed expenses Total fixed expenset Niet operating incon (los) 10.100 8,900 43.300 20.900 114.700 40.700 185.400 53.800 413.500 124.300 $ 49,500 $ 20.700 40,000 20.600 7,300 15. 100 38.700 35, 300 81.000 50.600 167.600 121.600 $ 39,400 309,600) "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 cut 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 > Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or na 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 Required 2 Required 3 Prepare a properly atted 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 0 0 Contribution margin (loss) Traceable fixed expenses 0 0 Total traceable fixed expenses Product line segment margin (loss) 05 0 0 $ 0 Net operating income (loss) $ 0