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 $ 929,000 478,000 451,000 Dirt Bikes $ 269,000 117,000 152,000 Mountain Bikes $ 408,000 207,000 201,000 Racing Bikes $ 252,000 154,000 98,000 70,400 8,600 40,900 20,900 43,400 20,800 7,400 15,200 113,500. 40,200 38,100 35,200 185,800 53,800 81,600 50,400 413,100 123,400 168,000 121,700 $ 37,900 $ 28,600 $ 33,000 $ (23,700) 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?