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 $922,000 675.000 000 Dirt Bikes $265.000 120.000 145.000 Mountain Bikes 5.400,000 197,000 203.000 Racing bikes 5.257.000 159,00 95.000 Sales variante cantecturing and selling expenses Contribution margin Flued expenses Advertising, traceable Depreciation of special equipment Salaries of product line managers Allocated on fixed expenses Total fixed expenses Net operating income (loss) 69,900 44,500 115.00 184.400 414.200 $ 31,300 3,400 20,000 40,600 53,000 222,00 $ 22,200 40,900 7,500 35,500 80,00 167 200 $ 35,00 20,600 15,900 36,800 51.400 124.700 5 (26,700) "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 property 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 Required 2 Required 3 D What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? gadh Required 2 > Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? OYes ONO Required 1 Required 2 Required 3 Prepare a property formatted segmented income staternent that would be more useful to management in assessing the long-rur profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable faced expenses. Total traceable foxed expenses Product line segment margin (105) Net operating income (oss)