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) Total Dirt Mountain Bikes Bikes Racing Bikes $ 928,000 $265,000 $410,000 $ 253,000 467,000 461,000 151,000 114,000 195,000 158,000 215,000 95,000 70,100 8,900 40,600 20,600 44,000 20,900 7,400 15,700 114,100 40,400 38,000 35,700 185,600 53,000 82,000 50,600 413,800 123,200 168,000 122,600 $ 47,200 $ 27,800 $ 47,000 $ (27,600) "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 property 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? Required t Required 2 >