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 $ 927,090 $ 261,908 $ 408,980 $ 258, 098 Variable manufacturing and selling expenses 477,090 110,080 289,980 158,080 Contribution margin 151,909 199,909 Fixed expenses: Advertising, traceable 69, 680 8,680 40, 180 20,980 Depreciation of special equipment 42,980 20 , 280 7,280 15 , 509 Salaries of product- line managers 114, 890 41,980 38, 280 35, 690 Allocated common fixed expenses* 185 , 409 52 ,209 81,680 51, 609 Total fixed expenses 412,798 122,980 167,109 123, 608 Net operating income (loss) $ 37,308 $ 29,980 $ 31,980 $ (23, 609) `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?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? Yes ONDComplete 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 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)