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 $ 922,000 467,000 455,000 Dirt Bikes $ 262,000 114,000 148,000 Mountain Bikes $ 408,000 Racing Bikes $ 252,000 201,000 207,000 152,000 100,000 70,300 8,600 40,900 20,800 43,400 20,300 7,600 15,500 115,000 41,000 38,300 35,700 184,400 52,400 81,600 50,400 413,100 122,300 168,400 122,400 $ 41,900 $ 25,700 $38,600 $ (22,400) ces 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? Net operating income (1055) "Allocated on the basis of sales dollars. 341,500 25,100 > 38, > ( Check my work