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. $ 921,000 471,000 $ 269,000 118,000 Total Dirt Bikes Mountain Bikes $ 401,000 450,000 151,000 198,000 203,000 Racing Bikes $ 251,000 155,000 96,000 69,800 8,300 40,900 20,600 43,500 20,600 7,500 15,400 115,900 40,400 38,500 37,000 184,200 53,800 80,200 50,200 413,400 123,100 167,100 123,200 $ 36,600 $ 27,900 $ 35,900 $ (27,200) 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? Financial advantage (disadvantage) per quarter. $ (36,400) Required f Required 2 >