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 incone (loss) "Allocated on the basis of sales dollars. Total Dirt Bikes $920,000 462,000 $ 263,000 113,000 Mountain Bikes $ 407,000 Racing Bikes $ 250,000 458,000 150,000 197,000 210,000 152,000 98,000 68,800. 8,600 40,100 20,100 43,600 20,200 7,800. 15,600 115,700 40,900 38,400 36,400 184,000 52,600 81,400 50,000 412,100 122,300 167,700 122,100 $ 45,900 $ 27,700 $ 42,300 $ (24,100) 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. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage (disadvantage) per quarter