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 Total Dirt Bikes Bikes Racing Bikes Sales $ 931,060 $ 268,000 $ 403, 000 $ 260,000 Variable manufacturing and selling expenses 469,000 120,060 196, 000 153 , 000 Contribution margin 462, 000 148, 000 207, 000 107,000 Fixed expenses : Advertising, traceable 70, 300 8, 600 40, 800 20,900 Depreciation of special equipment 43, 800 20, 100 7, 600 15, 300 Salaries of product-line managers 114, 600 40, 106 38, 000 36,500 Allocated common fixed expenses* 186, 200 53 , 600 80 , 600 52,000 Total fixed expenses 414, 190 122,409 167, 000 124,700 Net operating income (loss) $ 47,900 $ 25, 600 $ 40, 000 $ (17, 700) "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? Required 1 Required 2 >