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 $ 919,000 470,000 449,000 Dirt Bikes $ 267,000 115,000 152,000 Mountain Bikes $ 400,000 202,000 198,000 Racing Bikes $ 252,000 153,000 99,000 69,800 8,200 40,800 20,800. 44,800 20,900 7,900 16,000 115,500 40,300 38,800 36,400 183,800 53,400 80,000 50,400 413,900 122,800 167,500 123,600 $ 35,100 $ 29,200 $ 30,500 $ (24,600) 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: What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? B. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run