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 $ 934,000 Dirt Bikes $267,000 Hountain Bikes $408,000 Racing Bikes $ 259,000 484,000 120,000 267,000 157,000 450,000 147,000 201,000 102,000 70,000 8,900 40,700 20,400 44,000 20,500 7,800 15,700 114,300 40,900 38,100 35,300 186,500 53,400 415.100 123.700 81,600, 168,200 51,800 123,200 $ 34,900 $ 23,300 $ 32,800 $ (21,200) 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