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 Racing Bikes Total Dirt Bikes Bikes Sales $ 923,999 $ 263,888 $ 494,999 $ 256,999 Variable manufacturing and selling expenses 477,888 116,888 284,888 157,888 Contribution margin 446,888 147,888 288,888 99,888 Fixed expenses: Advertising, traceable 69,988 8,288 41,888 28,788 Depreciation of special equipment 43,888 28,488 7,288 15,488 Salaries of producteline managers 114,888 48,988 38,488 35,588 Allocated common fixed expenses'\" 184,688 52,688 88,888 51,288 Total fixed expenses 412,388 122,188 167,488 122,888 Net operating income (loss) $ 33,?88 $ 24,988 $ 32,688 $ (23,388) '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. 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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > 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 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? OYes ONO ( Required1 Required3 > 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 longrun profitability of the various product lines. Contribution margin (loss) Traceable xed expenses: Total traceable xed expenses Product line segment margin (loss) Net operating income (loss)