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 . . Total Dirt Bikes Bikes Raclng Blkes Sales $ 922,999 5 265,666 5 462,666 5 255,666 Variable manufacturing and selling expenses 4?2,666 115,366 236,666 151,666 Contribution margin 456,666 156,666 196,666 164,666 Fixed expenses: Advertising, traceable 69,666 3,466 46,366 26,366 Depreciation of special equipment 44,366 23,?66 3,666 15,666 Salaries of productline managers 114,166 46,466 33,566 35,266 Allocated corrlrlon fixed expenses' 134,466 53,666 33,466 51,666 Total fixed expenses 411,866 122,566 16?,266 122,166 Net operating income (loss) $ 335293 5 275590 $ 235399 $ (13.133) *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 nancial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? inancial advantage {disadvantage} per quarter $ (4,525}