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 MountainRacing $931,000 $269,000 404,0 258,000 453,000 110,000 193,000 158,0 211,000 168,699 69,300 8,200 40,30 20,880 43,000 20,1007,60015,300 Dirt Total.. Bikes. : Bikes Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: 478,000 159,000 Advertising, traceable Depreciation of special equipment Salaries of product-line 115,100 4,800 38,48 35,9 managers Allocated common fixed 186,200 53,800 80,800 51,600 167,100 123,680 64,400 $ 36,100 43,900 $(15,600) expenses Total fixed expenses 413,600 122,9 Net operating income (loss) 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 valuea nd does not wear out. Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2> Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? es No Required 1 Required 3> Complete this question by entering your answers in the tabs below. Required 1Required 2Require3 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 (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss)