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) Dirt Total $ 923,000 462,000 461,000 Mountain Bikes Bikes $266,000 $ 405,000 $252,000 114,000 198,000 150,000 152,000 207,000 102,000 Racing Bikes 69,700 8,900 43,500 20,900 114,800 40,500 184,600 412,600 123,500 40,300 20,500 7,400 15,200 38,300 36,000 53,200 81,000 50,400 167,000 122,100 $ 48,400 $ 28,500 $ 40,000 $(20,100) *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 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial (disadvantage) per quarter D < Required 1 Required 2 >