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 $ 926,000 464,000 Dirt Bikes $265,000 117,000 Mountain Bikest $ 407,000 192,000 Racing Bikes $ 254,000 155,000 462,000 148,000 215,000 99,000 69,200 8,200. 40,700 20,300 43,300 20,300 7,100 15,900 114,000 40,400 38,100 35,500 185,200 53,000 81,400 50,800 411,700 121,900 167,300 122,500 $ 50,300 $ 26,100 $ 47,700 $ (23,500) 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?