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 $921, 474,eee 247.00 Dirt Bikes $262.000 113.000 149.000 Mountain Bikes ,00 200.000 195, Racing Bikes 259.000 155,000 101. 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 wet operating income (los) 9. 43,600 114.500 8.50 20,400 4,700 40,500 700 38.709 114,2 20, 15.000 35,4 51, see 123, $(20,00) 166,600 28,4ee $ 27,00 $ "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 property 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. Rod1 Required Required What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes Required 2 >