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 $ 925,000 479,000 446,000 Dirt Bikes $ 265,000 113,000 152,000 Mountain Bikes $ 407,000 208,000 199,000 Racing Bikes $ 253,000 158,000 95,000 69,400 8,600 40,300 20,500 43,700 20,300 7,700 15,700 114,600 40,500 38,400 35,700 185,000 53,000 81,400 50,600 412,700 122,400 167,800 122,500 $ 33,300 $ 29,600 $ 31,200 $ (27,500) 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?