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: Dirt Mountain Racing Total Bikes Bikes Bikes $ 921,000 $263,000 $ 401,000 $257,000 471,000 120,000 191,000 160,000 450,000 143,000 210,000 97,000 Sales Variable manufacturing and selling expenses Contribution margin Tixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses. Total fixed expenses Net operating income (losa) 68,700 8,500 40,100 20,100 43,900 20,700 7,900 15,300 115,400 40,900 38.200 36,300 184,200 52.600 80,200 51,400 412,200 122,700 165.400 123,100 37,800 $ 20,300 $ 43.600 $(26.100) "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. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? (Required Required 2 > Artiga.mp3 450,000 expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) 68,700 43,900 115,400 184,200 412,200 12 $ 37,800 $ 2 *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the line should be discontinued. The special equipment used to pa Required: 1. What is the financial advantage (disadvantage) per quarter of disc 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that w profitability of the various product lines. Complete this question by entering your answers in the tabs belc Required 1 Rituired 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes No Required 1 Required 3 Total fixed expenses Net operating income (loss) 101,200 52,600 80,200 51,400 412,200 122,700 166,400 123,100 $ 37,800 $ 20,300 $ 43,600 $126,100) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation a the line should be discontinued. The special equipment used to produce racing bikes has no resale value and doe 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 assess profitability of the various product lines. 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 lor run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes 0 Contribution margin (loss) Traceable foxed expenses: 0 0 Total traceable fixed expenses Product line segment margin (loss) 0 0 0 0 $ 0 $ 0 $ 0 Net operating income (los) $ 0