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 Bikes TotalBikes Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses s 922,8ee $265,808 485,808 252,808 471,80e 115,88 28,ee8 156,808 96,888 451,868 15e,8e8 285,868 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 48,888 69,188 43,188 2,388 28,188 7,308 15, 588 36,888 50,488 8,288 38,68 116,808 4,688 184,488 53,808 412,688 122,188 81,800 Total fixed expenses Net operating income (loss) $ 38,488 27,937,308 $(26,8ee) 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. Requlrec 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