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. $ 920,000 476,000 Total 444,000 Dirt Bikes $ 266,000 111,000 155,000 207,000 195,000 Mountain Bikes $ 402,000 Racing Bikes $252,000 158,000 94,000 70,100 8,700 40,600 20,800 43,900 20,900 7,700 15,300 115,200 40,700 38,200 36,300 184,000 53,200 413,200 123,500 80,400 166,900 50,400 122,800 $ 30,800 $ 31,500 $ 28,100 $ (28,800) 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? Financial advantage (disadvantage) per quarter $ (42,700) Required T Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Should the production and sale of racing bikes be discontinued? Yes No 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. Contribution margin (loss) Traceable fixed expenses Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0