The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 923,999 3; 255,999 3; 491,999 5 259,999- Variable manufacturing and selling expenses 456,999 112,999 191,999 153,999 Contribution margin 467,999 154,999 219,999 193,999 Fixed expenses: Advertising, traceable 29,299 8,499 49,999 29,999 Depreciation of special equipment 43,299 29,499 7,699 15,299 Salaries of product-line managers 114,499 41,999 38,299 35,299 Allocated common fixed expenses* 184,699 53,299 89,299 51,299 Total fixed expenses 412,499 123,999 166,999 122,599 Net operating income (loss) $ 54,599 $ 31,930 $ 43,199 $ (19,503) *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 longrun protability ofthe various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run protability of the various product lines