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 $ 933,000 468,000 Dirt Bikes $270,000 114,000 Mountain Bikes $ 403,000 198,000 Racing Bikes $ 260,000 156,000 104,000 465,000 156,000 205,000 69,500 8,600 40,200 20,700 43,500 20,700 7,500 15,300 116,700 40,800 38,900 37,000 186,600 54,000 416,300 124,100 80,600 167,200 52,000 125,000 $ 48,700 $ 31,900 $ 37,800 $ (21,000) "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 11 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Require Required 2 >