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: Mountain Racing Total Dirt Bikes Bikes Fixed expenses: Sales Variable manufacturing and selling expenses Contribution margin. Advertising, traceable $ 931,000 $ 269,000 Bikes $ 259,000 403,000 462,000 469,000 114,000 155,000 205,000 150,000 198,000 109,000 69,400 8,200 41,000 20,200 Depreciation of special equipment 43,500 20,400 7,200 15,900 Salaries of product-line managers 115,100 40,300 38,400 36,400 Allocated common fixed expenses* 186,200 53,800 80,600 51,800 Total fixed expenses 414,200 122,700 167,200 124,300 Net operating income (loss) $ $ $ 47,800 $ 32,300 30,800 (15,300) "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 Prenare a pronerly formatted seamented income statement that would he more useful to management in