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 Dirt Bikes. $920,000 $ 263,000 Mountain Bikes. $ 406,000 Racing Bikes $ 251,000 472,000 111,000 210,000 151,000 448,000 152,000 196,000 100,000 69,100 8,700 40,200 20,200 43,400 20,600 7,600 15,200 115,700 40,700 38,200 36,800 184,000 52,600 81,200 50,200 412,200 122,600 167,200 122,400 $ 35,800 $ 29,400 $ 28,800 $(22,400) 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