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 $ 923,000 Dirt Bikes 464,000 $ 268,000 113,000 Mountain Bikes $ 400,000 Racing Bikes $255,000 193,000 158,000 459,000 155,000 207,000 97,000 70,100 8,800 40,800 20,500 43,800 20,500 8,000 15,300 114,800 40,000 39,000 35,800 184,600 53,600 80,000 51,000 413,300 122,900 167,800 122,600 $ 45,700 $ 32,100 $ 39,200 $ (25,600) 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