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: Total Dirt Bikes 447,000 $ 262,000 110,000 152,000 Mountain Bikes $ 404,000 207,000 197,000 Racing Bikes $ 255,000 157,000 98,000 70,100 9,000 40,200 20,900 44,700 20,800 8,000 15,900 115,000 40,800 38,200 36,000 184,200 52,400 414,000 123,000 80,800 167,200 51,000 123,800 $ 33,000 $ 29,000 $ 29,800 $ (25,800) 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) $ 921,000 474,000 "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 21 Required 3