The Regal Cycle Company manufactures three types of bicyclesa 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 $ 931,000 $268,000 $ 409,000 $ 254,000 473,000 119,000 200,000 154,000 458,000 149,000 209,000 100,000 Sales Variable manufacturing and selling expenlies 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) 69,500 8,400 40,500 20,600 43,700 20,900 7,100 15,700 114,500 40,700 38,700 35, 100 186,200 53,600 81,800 50.800 413,900 123,600 168, 100 122,200 $ 44,100 $ 25,400 $ 40,900 $(22,200) "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 1 Required 2 Required 3 What ie the financial arluantane (disadvantane ner uarter of dierontinuinn the Rarinn Rilee