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: Mountain 5 Racing Bikes Total Dirt Bikes Bikes ints Sales $ 922, 000 $ 262, 000 $ 404,000 $ 256, 000 481, 000 118, 000 206, 000 157, 000 Variable manufacturing and selling expenses Contribution margin 441, 000 144 , 000 198, 000 99, 000 Fixed expenses: 20 , 400 eBook Advertising, traceable 69, 800 8 , 700 40 , 700 Depreciation of special equipment 44, 100 20 , 600 7, 700 15 , 800 Salaries of product-line managers 114 , 200 40, 600 38, 600 35, 000 Allocated common fixed expenses* 184 , 400 52, 400 80 , 800 51, 200 Hint Total fixed expenses 412, 500 122, 300 167, 800 122, 400 Net operating income (loss) $ 28,500 $ 21 , 700 $ 30, 200 $ (23, 400) *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 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?