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: 16.66 points Sales 044626 look Him Prive References 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 $920,000 Dirt Bikes $263,000 474,000 454,000 111,000 Mountain Bikes $400,000 204,000 Racing Bikes $257,000 159,000 152,000 204,000 98,000 70,000 8,900 40,200 20,900 43,000 20,500 7,300 15.200 114,600 40,600 38,600 35,400 185,600 52,600 $1,600 $1,400 413,200 122,600 167,700 122,900 $40,000 $29,400 $ 36,300 $ (24,900) 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?