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 $ 928,000 477,000 $ 265,000 118,000 147,000 Total Dirt Bikes 451,000 Mountain Bikes $ 407,000 202,000 205,000 Racing Bikes $ 256,000 157,000 99,000 69,000 8,300 40,500 20,200 42,800 20,200 7,200 15,400 114,500 40,400 38,000 36,100 185,600 53,000 81,400 51,200 411,900 121,900 167,100 122,900 $ 39,100 $ 25,100 $ 37,900 $ (23,900) Net operating income (loss) *Allocated on the basis of sales dollars. 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?