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: 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) "Allocated on the basis of sales dollars. Total $ 927,000 477,000 Dirt Bikes. $ 268,000 118,000 Mountain Bikes $ 403,000 207,000 Racing Bikes $ 256,000 152,000 450,000 150,000 196,000 104,000 69,800 8,300 40,600 20,900 44,100 20,900 7,800 15,400 115,400 40,900 38,600 35,900 185,400 53,600 80,600 51,200 414,700 123,700 167,600 123,400 $ 35,300 $ 26,300 $ 28,400 $ (19,400) 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 is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes