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 $930,000 458,000 Dirt Bikes $268,000 111,000 195,000 472,000 157,000 213,000 69,500 8,400 40,900 42,700 20,100 7.500 114,300 40,100 38,400 186,000 53,600 81,600 412,500 122,200 $ 59,500 $ 34,800 $ 44,600 Mountain Bikes $ 408,000 168, 400 Racing Bikes $254,000 152,000 102,000 20, 200 15,100 35, 800 50, B00 121, 900 5 (19,900) 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? Required 2 >