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 $ 919,090 $ 263,090 $ 401,008 $ 255,090 Variable manufacturing and selling expenses 473,eve 114,098 203,090 156,00e Contribution margin 446,ege 149,098 198, 090 99,090 Fixed expenses: Advertising, traceable 69,400 8,600 40, 608 20, 208 Depreciation of special equipment 43,600 20, 808 7,408 15, 408 Salaries of product-line managers 115,800 40, 500 38,808 36,500 Allocated common fixed expenses* 183,890 52,600 80,208 51,090 Total fixed expenses 412,609 122,508 167,808 123, 100 Net operating income (loss) $ 33,400 $ 26,500 $ 31,090 $ (24, 109) "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? Financial advantage (disadvantage) per quarter s 48,000 Required 1 Required 2 >