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 Dirt Bikes Sales $930,000 Variable manufacturing and selling expenses 470,000 Contribution margin 460,000 $ 267,000 112,000 155,000 Mountain Bikes $ 407,000 Racing Bikes $ 256,000 205,000 202,000 153,000 103,000 Fixed expenses: Advertising, traceable 70,100 8,800 40,500 20,800 Depreciation of special equipment 43,800 20,900 Allocated commop fixed expenses Salaries of product-line managers Total fixed expenbes 7,600 15,300 115,300 40,400 38,900 36,000 186,000 53,400 415,200 123,500 81,400 168,400 51,200 123,300 Net operating income (loss) $ 44,800 $31,500 $ 33,600 $ (20,300) "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?