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 $ 916,000 471,000 $ 262,000 119,000 Mountain Bikes 5 402,000 195,000 Racing Bikes $252,000 157,000 445,000 143,000 207,000 95,000 69,500 8,500 40,700 20,300 43,200 20,600 7,300 15.300 114,600 40,600 38,700) 35,300 183,200 52,400 80,400 50,400 410,500 122,100 167,100 121,300 $34,500 $ 20,900 $ 39,900 $ (26,300) 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 11 Required 21 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing (Mikes? Required 2 >