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 $ 924,000 463,000 461,000 Dirt Bikes $ 264,000 116,000 148,000 Mountain Bikes $ 404,000 196,000 208,000 Racing Bikes $ 256,000 151,000 105,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equiprent Salaries of product-line managers Allocated connon fixed expenses Total fixed expenses Net operating income (loss) 69,300 43,100 116,200 184,800 413,400 $ 47,600 8,200 20,500 41,000 52,800 122,500 $ 25,500 41,000 7,200 39,000 80,800 168,000 $40,000 20,100 15,400 36,200 51,200 122,900 5 (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 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 Required 2 Required a what is the financial advantage (disadvantage) per quarter of discontinuing the Racing Eikes? 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 (los) Traceable forced expenses Total traceable foxed expenses Product line segment margin (los) Net operating income (oss)