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 $925,000 $ 263,000 Mountain Bikes $407,000 Variable manufacturing and selling expenses 479,000 110,000 209,000 Racing Bikes $255,000 152,000 Contribution margin 446,000 145,000 190,000 103,000 Fixed expensess Advertising, traceable 69,900 8,800 40,700 20,400 Depreciation of special equipment 44,200 20,800, 7,400 16,000 Salaries of product-line managers 115,500 40,400 38,900 36,200 Allocated common fixed expenses 185,000 52,600 81,400 51,000 Total fixed expenses 414,600 122,600 168,400 123,600 Net operating income (loss) $31,400 $ 22,400 $ 29,600 (20,600) "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 2>