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 $ 923,000 475,000 Dirt Bikes $ 264,000 114,000 Mountain Bikes $ 403,000 204,000 Racing Bikes $ 256,000 157,000 448,000 150,000 199,000 99,000 69,900 8,300 40,900 20,700 42,700 20,400 7,100 15,200 115,800 41,000 38,400 36,400 184,600 52,800 80,600 51,200 413,000 122,500 167,000 123,500 $ 35,000 $ 27,500 $ 32,000 $ (24,500) 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? Financial advantage (disadvantage) per quarter Financial advantage per quarter Required 2 >