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 $920,000 471,000 Dirt Bikes $263,000 113,000 449,000 150,000 Mountain Bikes $ 400,000 205,000 195,000 Racing Bikes $ 257,000 153,000 104,000 69,100 8,700 40,300 20,100 43,100 20,200 7,700 15,200 116, 300 40,600 38,700 37,000 184,000 52,600 50,000 51,400 412,500 122,100 166,700 123,700 $ 36,500 $ 27,900 $ 28,300 $ (19,700) 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 31 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? per quart