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 Dirt Bikes $930,000 $ 266,000 480,000 450,000 118,000 148,000 Mountain Bikes $ 407,000 202,000 Racing Bikes $ 257,000 9,000 205,000 97,000 70,400 8,700 40,800 20,900 43,300 20,700 7,300 15,300 114,000 40,300 38,400 35,300 186,000 53,200 81,400 51,400 413,700 122,900 167,900 122,900 $ 36,300 $ 25,100 $ 37,100 $ (25,900) 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