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. Total $ 922,000 460,000 Dirt Bikes $ 267,000 117,000 Mountain Bikes 462,000 150,000 $ 405,000 192,000 213,000 Racing Bikes $ 250,000 151,000 99,000 70,000 8,700 40,800 20,500 43,600 20,700 7,500 15,400 114,800 40,300 38,300 36,200 184,400 53,400 81,000 50,000 412,800 123,100 167,600 122,100 $ 49,200 $ 26,900 $ 45,400 $ (23,100) 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 11 Required 2 Required 3