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 Total fixed expenses Allocated common fixed expenses Net operating income (loss) Allocated on the basis of sales dollars. Total $ 927,000 Dirt Bikes $268,000 478,000 116,000 449,000 152,000 206,000 200,000 Mountain Bikes Racing Bikes $ 406,000 $ 253,000 156,000 97,000 70,700 8,900 40,900 20,900 43,800 20,600 7,300 15,900 115,000 41,000 38,300 35,700 185,400 53,600 81,200 50,600 414,900 124,100 167,700 123,100 $ 34,100 $ 27,900 $ 32,300 $ (26,100) 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?