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: Sales Variable manufacturing and selling expenses. Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers , Allocated common fixed expenses* Total fixed expenses Net operating income (loss) Total Dirt Mountain Racing Bikes Bikes Bikes $925,000 $266,000 $405,000 $254,000 471,000 117,000 194,000 160,000 454,000 149,000 211,000 94,000 69,700 43,800 8,300 20,300 40,700 20,700 7,900 15,600 115,600 40,700 38,300 36,600 185,000 414,100 53,200 81,000 122,500 167,900 50,800 123,700 $ 39,900 $ 26,500 $ 43,100 $(29,700) "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. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes