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: Total $922, e80 475,000 447,880 Dirt Bikes $ 263,280 117,080 146,089 Mountain Bikes $ 484, 200, eee 204,000 Racing Bikes $ 255,000 158,00 97, see 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) 69,380 44,180 113,880 184, 490 411,600 $ 35, 400 8,280 28,580 40,000 52,689 121, 380 $ 24,780 40,100 7, 70e 38,600 80,809 167,200 $ 36, Bee 21, eee 15,90e 35,200 51, see 123, 10e $ (26,100) *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? Required Required 2 >