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 $ 923,000 472, 000 451,000 Dirt Bikes $ 264,000 117,000 147,000 $ 408,000 Mountain Bikes Racing Bikes $ 251,000 198, 000 210,000 157,000 94,000 69,600 8, 400 40, 300 20, 900 43, 500 20, 700 7, 100 15, 700 114, 200 40, 700 38, 200 35, 300 184, 600 52, 800 81, 600 50, 200 411,900 122, 600 167, 200 122, 100 $ 39, 100 $ 24,400 $ 42,800 $ (28,100) 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 < Required 1 Required 2 >