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 fofow: Dirt Mountain Racing Total Bikes Bikes Bikes Sales $ 922,000 $264,000 $ 407,000 $ 251,000 variable manufacturing and selling 476,000 expenses 115,000 203,000 158,000 Contribution margin 446,000 149,000 204,000 93,000 Fixed expenses: Advertising, traceable 69,500 8,500 40,300 20,700 Depreciation of special equipment 43,500 20,200 8,000 15,300 Salaries of product-line managers 126,000 40,500 38,600 36,900 Allocated common fixed expenses 184,400 52, 800 81,400 50,200 Total fixed expenses 413,400 122.000 168,300 123, 100 Net operating income (loss) $ 32,600 $ 27,000 $ 35,700 $(30,100) *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. he special equipment used to produce racing bikes has no resale value and does not Required: 1. What is the financial advantage (dispdvantage) 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. View previous attempt Check my work long Fun 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? Financial (disadvantage) per quarter es Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requires 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 0 0 0 0 Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses Product line segment margin (loss) 0 0 0 0 0 $ 0 $ 0 $ 0