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. Dirt Mountain Racing Total Bikes Bikes Bikes $924,000 $265,000 $402,000 $257,000. 467,000 116,000 198,000 153,000 457,000 149,000 204,000 104,000 69,300 8,200 43,100 20,600 40,400 20,700 7,200 15,300 114,900 40,200 38,700 36,000. 184,800 53,000 80,400 412,100 122,000 166,700 51,400 123,400 $ 44,900 $27,000 $ 37,300 $(19,400) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation is 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? Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO 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: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) + Totals Dirt Bikes Mountain Bikes Racing Bikes