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 Sales Racing Bikes $ 924,000 Variable manufacturing and selling expenses $ 268,000 $ 402,eee $ 254,00 475, eee 113, eee 284.eee 155, eee Contribution margin 449, eee 155, eee 198,eee 96,000 Fixed expenses: Advertising, traceable 69,500 8, see 40,300 20,900 Depreciation of special equipment 43,800 Salaries of product-line managers 20,900 7,400 15,500 114,700 40,200 38,500 36,000 Allocated common fixed expenses 184,800 53,600 80,400 50, 800 Total fixed expenses 412,800 123,000 166,600 123,200 Net operating income (loss) $ 36,200 $ 32,000 $ 31,400 $(27,200) *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 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 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. Dirt Bikes Mountain Bikes Racing Bikes Totals Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margindoss) Net operating income (loss)