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 xed expenses Total fixed expenses Net operating income (loss) Allocated on the basis of sales dollars Total Dirt Bikes Mountain Bikes Racing Bikes $ 935,000 479,000 $ 267,000 110,000 $ 258,000 111,000 209,000 159,000 456,000 156,000 201,000 99,000 70,000 8,400 40,700 20,900 43,200 20,200 7,700 15,300 116,000 41,000 38,400 36,600 187,000 $3,400 416,200 123,000 82,000 168,800 51,600 124,400 $ 39,800 $ 33,000 $ 32,200 $ (25,400) nces 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 nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the profitability of the various product lines. Contribution margin (loss) Traceable fixed expenses Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 Total traceable fixed expenses Product line segment margin (loss) 0 0 0 0 + 0 $ 0 $ 0 $ 0 Net operating income (loss) $ 0 < Required 2 Required 3