the regal cycle company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. data on sales and expenses for the past quarter follow: totaldirt bikesmountain bikesracing bikessales$ 930,000$ 269,000$ 402,000$ 259,000variable manufacturing and selling expenses481,000117,000206,000158,000contribution margin449,000152,000196,000101,000fixed expenses: advertising, traceable69,3008,50040,50020,300depreciation of special equipment42,40020,1007,20015,100salaries of product-line managers114,30040,00038,10036,200allocated common fixed expenses*186,00053,80080,40051,800total fixedexpenses412,000122,400166,200123,400net operating income (loss)$ 37,000$ 29,600$ 29,800$ (22,400)

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: Total $ 930,000 481,000 449,800 Dirt Bikes $ 269,000 117.000 152,000 Mountain Bikes $ 402,000 286,000 196,000 Racing Bikes $ 259,000 158,000 101,000 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) 69, 300 42,400 114,300 186,000 412, eee $ 37,000 8,500 20, 100 40,000 53,888 122,400 $ 29,600 40,500 7,200 38,100 80,400 166, 200 $ 29,800 20,300 15,100 36,200 51,800 123,400 $ (22,400) "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 in hilinhar nestane dane.net 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 S (52 300) Prepare a property formatted segmented income statement that would be more useful to management in assessing the long run profitability of the various product lines. Totats ols O 930,000 459,000 471,000 Dirt Bike Mountain Bikes $ 269,000 S 402,000S 112,000 196,000 157,000 206,000 O Rucian Bike 259,000 151,000 108,000 Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses. Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable faced expenses Product line segment margin (loss) Common fixed expenses Net operating income (loss) 00 8,800 20,800 X 41,000 X 7,200 X 390 000 70,300 43,800 $ 114.000 X 228,100 242.900 $ 186.000 56,900 40,600 X 70,200 86,800 $ 20,500 15.800 X 35,200 71,500 36,500 438,200 (232 200) $ > S