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: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $934,000 $ 266,000 $ 488,000 $ 260,000 variable manufacturing and selling expenses 473,eee 117,000 202,000 154,000 Contribution margin 461,000 149,000 286,000 186,000 Fixed expenses: Advertising, traceable 69,800 8,500 48,888 20,500 Depreciation of special equipment 42,800 20,100 7.300 15,400 Salaries of product-line managers 114,900 40,800 38,200 35,900 Allocated connon fixed expenses 186,800 53,200 81,600 52,000 Total fixed expenses 414,300 122,600 167,900 123,800 Net operating incone (loss) $ 46,700 $ 26,400 $ 38,100 $ (17,800) "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 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. 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable foxed expenses Product line segment margin (loss) Net operating income (loss)