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 $ 919,000 473,000 446,000 Dirt Bikes $ 265,000 116,000 149,000 Mountain Bikes $ 404,000 Racing Bikes 200,000 204,000 $ 250,000 157,000 93,000 70,000 8,700 40,900 20,400 44,300 20,900 7,600 15,800 114,600 40,700 38,100 35,800 183,800 53,000 80,800 50,000 412,700 123,300 167,400 122,000 $ 33,300 $25,700 $ 36,600 $ (29,000) 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. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 >