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 varsable manufacturing and selling 00212 0 1072,68055,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: 466 899 112,e193,88 55.888 465,800 151,800 214,800 1, eee Advertising, traceable Depreciation of special equipment Salaries of product-line sanagers Allocated common fixed expenses 69, 9ee 8,60948, 580 28,880 44,388 28,6809 15,8ee 115,600 4e'8 38,600 36,200 185,ee 52,6081 48 1 e 414,800 122,6ee 168.48e 12).Bee Total f1xed expenses Net operating incone (loss) s 5e,280 s 28,489 s 45,6ee $(23,8ee) Allocated on the basis of sales dollars 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 hes no resale velue and does not wear out Required: . What is the financlai advantage (disadvantage) per quaiter of discontinuing the racing bikes? 2 Shouid the production and saie of racing bikes be discontinued? nt in assessing the pare a propery formatted segmented income statement that would be more useful to manageme profitability of the various product lines Complete this question by entering your answers in the tabs below. Raduired 1 Requined 2 Required 3