The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Dota on sales and expenses for the past quarter follow: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 930,000 $ 263,000 $ 409,000 $ 258,000 Variable manufacturing and selling expenses 476,000 112,000 206,089 158,000 Contribution nargin 454,000 151,000 203,000 100,000 Fixed expenses: Advertising, traceable 70,400 9,000 40,400 21,000 Depreciation of special equipent 43,600 20,200 7.800 15,600 Salaries of product-Line managers 113,800 40,200 38,300 35,300 Allocated common fixed expenses. 186,000 52,600 81,800 51,600 Total fixed expenses 413,800 122,000 169,300 123,500 Net operating income (loss) $ 40,200 $ 29,000 $ 34,700 $ (23,500) "Allocated on the basis of sales dollars. Management is concerned about the continued lossos 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. Required 1 Required 2 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 below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? OYes No 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. Totals Dirt Bikes Mountain Bike Racing Bikes Contribution margin (loss) Traceable foxed expenses Total traceable foxed expenses Product line segment margin (loss) Net operating income (loss)