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:

Dirt Mountain Racing Total Bikes Bikes Bikes Sales 5 924,666 $276,666 5 461,666 5 253,666 Variable manufacturing and selling expenses 456,666 113,666 194,666 151,666 Contribution margin 466,666 152,666 262,666 162,666 Fixed expenses: Advertising, traceable 69,566 6,?66 46,266 26,666 Depreciation of special equipment 43,666 26,366 7, 566 15,366 Salaries of productline managers 114,266 46,666 33,166 35,566 Allocated comon 'Fixed expenses't 184,366 54,666 86,266 56,666 Total fixed expenses 412,166 124,166 166,666 122,666 Net operating income (loss) 5 53,966 $ 32,966 $ 41,666 $(26,666) *Allocated on the basis ofsales 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 protability of the various product lines. Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of ILLU Required 1 Financial (disadvantage) per quarter Financial advantage per quarterRequired 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? O Yes O NoRequired 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)