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: Total Dirt Bikes Sales $925,000 $ 264,000 Variable manufacturing and selling expenses 456,000 Contribution margin 469,000 110,000 154,000 Mountain Bikes $ 401,000 195,000 206,000 Racing Bikes $ 260,000 151,000 109,000 Fixed expenses: Allocated common fixed expenses* Net operating income (loss) *Allocated on the basis of sales dollars. Advertising, traceable Depreciation of special equipment Salaries of product-line managers Total fixed expenses 70,000 8,200 40,900 20,900 42,800 20,200 7,200 15,400 116,100 40,900 38,700 36,500 185,000 52,800 80,200 52,000 413,900 122,100 167,000 124,800 $ 55,100 $ 31,900 $ 39,000 $ (15,800) 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? Financial (disadvantage) per quarter < Required 1 Required 2 >