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 Racing Bikes Sales Bikes $ 922, 000 $ 263, 000 $ 407, 000 $ 252, 000 Variable manufacturing and selling expenses 462, 000 115 , 000 196, 000 151, 000 Contribution margin 460, 000 148, 000 211, 000 101, 000 Fixed expenses: Advertising, traceable 69, 500 8, 200 40, 800 20, 500 Depreciation of special equipment 43, 900 20,900 7, 600 15, 400 Salaries of product-line managers 115, 600 40, 800 38, 400 36, 400 Allocated common fixed expenses* 184, 400 52, 600 81, 400 50 , 400 Total fixed expenses 413, 400 122, 500 168, 200 122, 700 Net operating income (loss) $ 46, 600 $ 25, 500 $ 42, 800 $ (21, 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