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: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 930,000 $ 263,000 $ 409,000 $ 258,000 Variable manufacturing and selling expenses 476,000 112,000 206,000 158,089 Contribution margin 454,000 151,000 203,000 100,000 Fixed expenses: Advertising, traceable 70,400 9,000 40,400 21,000 Depreciation of special equipment 43,600 20,200 7,800 15,600 Salaries of product-line managers 113,800 40,200 38,300 35,300 Allocated common fixed expenses. 186,000 52,600 81,800 51,600 Total fixed expenses 413,800 122,000 168,300 123,500 Net operating income (loss) $ 40,200 $ 29,000 $ 34,700 $ (23,500) "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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantage) per quarter $ 49.100