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. Contribution margin Fixed expensest Sales Variable manufacturing and selling expenses Advertising, traceable Depreciation of special equipment. Salaries of product-line managers Total fixed expenses Allocated common fixed expenses Net operating income (loss) "Allocated on the basis of sales dollars. Total $ 933,000 474,000 459,000 Dirt Bikes $265,000 117,000 148,000 Mountain Bikes $ 409,000 201,000 208,000 Racing Bikes $ 259,000 156,000 103,000 69,500 8,200 41,000 20,300 43,200 20,900 7,100 15,200 114,900 40,100 38,100 1 36,700 186,600 414,200 53,000 122,200 81,800 168,000 51,800 124,000 $ 44,800 $ 25,800 $ 40,000 $ (21,000) 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?