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 $925,00 460,000 Olet sikes 457,000 149,000 Mountain bikes $405,000 199, 212 INN Racing Bikes 1254,000 59,200 40,200 43,500 20,300 7,500 116,100 20.200 185,000 53,206 38,500 21,000 15,700 36,200 413,800 123,500 167,200 124,100 143,200 $ 26,500 5:44,000 $(20,100) 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. apter 11 Homework 1 YouTube Maps Login Earth-The Climate 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 ines Complete this question by entering your answers in the tabs below. look int Required 1 Required 2 Required 3 ences a What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantage) per quarter Required t Required 2 > Help Save & Exit Check Required I Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the longinn profitability of the various product lines Contribution margin (loss) Traceable foxed expenses Total traceable foxed expenses Product line segment margin (loss) Net operating income (loss) Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 0 $ $