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 Total $ 924,000 Net operating income (loss) "Allocated on the basis of sales dollars Dirt Bikes 465,000 $ 266,000 113,000 Mountain Bikes $ 405,000 Racing Bikes $ 253,000 200,000 152,000 459,000 153,000 205,000 101,000 69,100 8,200 40,500 20,400 43,300 20,300 7,800 15,200 113,600 40,500 38,000 35,100 154,800 53,200 81,000 50,600 410,800 122,200 167,300 121,300 5 48,200 $30,800 $37,700 (20,300) 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 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?