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: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-Line managers Allocated conton fixed expenses. Total fixed expenses Net operating income (1055) Dirt Mountain Racing Total Bikes Bikes Bikes $924,000 $262,000 $402,000 $ 260,000 479,600 117,000 209,000 153,000 445,000 145,000 193,000 107,000 69,500 8,40 40,500 20,600 43,600 20,400 7,40 15,800 115,300 40,500 38,300 36,500 184,800 52,400 88,400 52,000 413,200 121,700 166,600 124,900 $ 31,800 $ 23,300 $ 26,400 $(17,900) 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 rosele 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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > Net operating income (loss) $ 31,see s 23,300 $ 26,400 5(17,908) "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 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 Mountain Bike Racing Bikes Dirt Bikes 0 0 0 Contribution margin (loss) Traceable foxed expenses 0 0 0 0 Total traceable fxed expenses Product line segment margin (5) 0 $ 0 $ 0 05 $ 0 Net operating income (loss)