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 $ 922,000 464,000 458,000 Dirt Bikes $ 265,000 120,000 145,000 Mountain Bikes $ 402,000 193,000 209,000 Racing Bikes $ 255,000 151,000 104,000 70,100 8,700 40,800 20,600 44,000 20,800 7,700 15,500 115,600 40,200 38,700 36,700 184,400 53,000 80,400 51,000 414,100 122,700 167,600 123,800 $ 43,900 $ 22,300 $ 41,400 $ (19,800) 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?