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 $ 923,000 $ 270,000 $ 403,000 $ 250,000 Variable manufacturing and selling expenses 475,000 119,000 203,000 153,000 Contribution margin 448,000 151,000 200,000 97,000 Fixed expenses: Advertising, traceable 69,600 8,600 40,300 20,700 Depreciation of special equipment 43,800 20,400 7,700 15,700 Salaries of productline managers 115,500 40,900 39,000 35,600 Allocated common fixed expenses* 184,600 54,000 80,600 50,000 Total fixed expenses 413,500 123,900 167,600 122,000 Net operating income (loss) $ 34,500 $ 27.10% $ 32,490 $ (25.000) *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 nancial 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 profitability of the various product lines. Required: 1. What is the nancial 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 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? inancial advantage per quarter _ Required 2 > Required: 1. What is the nancial 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 profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? .Yes ONO Required: 1. What is the nancial 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 profitability of the 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 profitability of the various product lines. Net operating income (loss) ( Required 2