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) 454,000 Racing Bikes $ 256,000 154,000 102,000 Total $ 929,000 Dirt Bikes 475,000 $ 266,000 110,000 156,000 Mountain Bikes $ 407,000 190,000 217,000 69,600 8,700 40,300 20,600 44,200 20,300 7,900 16,000 114,200 40,000 38,100 36,100 185,800 53,200 81,400 51,200 413,800 122,200 167,700 123,900 $ 61,200 $ 33,800 $ 49,300 $ (21,900) "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?