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 Dirt Bikes $ 932,000 468,000 $ 266,000 116,000 Mountain Bikes $ 406,000 201,000 Racing Bikes $ 260,000 151,000 464,000 150,000 205,000 109,000 69,800 8,800 40,300 20,700 44,000 20,600 7,800 15,600 114,800 40,300 38,800 35,700 186,400 53,200 81,200 52,000 415,000 122,900 168,100 124,000 $ 49,000 $ 27,100 $ 36,900 $ (15,000) 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 21 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?