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 Sales 5 921,000 $265,000 404,000 3 254,000 Variable manufacturing and selling expenses 495.000 114.000 201,000 160,000 Contribution margin 46.000 149,000 203,000 Fixed expenses Advertising. traceable 69,000 8,400 40,500 20,100 Depreciation of special equipment 43,500 20, 200 7,400 15,200 Salaries of product line managers 115,100 40,100 38,100 36,900 Allocated common fixed expenses 154200 52,00 50.000 50.000 Total fixed expenses 411.600 123. 300 165,800 123,500 Net operating income (loss) $ 34,400 $ 23,00 36,200 5(29.500) "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? 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: 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 Dirt Bikes Mountain Bikes Racing Bikes Prey 1 of 6 !! Next > 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 Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating Income (loss)