The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales an expenses for the past quarter follow. Dirt Mountain Racing Total Bikes Bikes Bikes $ 925, eee $263,099 $ 406,698 $ 256,099 480,eee 117,600 299,000 154,089 445,690 146,888 197,899 102,099 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,700 8,700 40, 4ee 20,600 43,600 20,300 7,700 15,689 116,200 40,800 39,800 36,488 185, eee 52,688 81,280 51,200 414,500 122,400 168, 308 123,888 $ 30,500 $ 23,600 $ 28,700 $(21,880) "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. Requirt Required Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Complete this question by entering your answers in the tabs Required 1 Required 2 Required 3 Prepare a property 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 (los)