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 $ 922,000 $ 263,000 $ 404,000 $ 255,000 Variable manufacturing and selling expenses 473,000 116,000 205,000 152,000 Contribution margin 449,000 147,000 199,000 103,000 Fixed expenses Advertising, traceable 69,600 8,200 40,600 20,800 Depreciation of special equipment 44,400 20,800 7,600 16,000 Salaries of product-line managers 116,100 40,100 38,900 36,900 Allocated common fixed expenses 184,400 52,600 80,000 53,000 Total fixed expenses 414,500 121,900 162 900 124,700 Net operating Incone (loss) $ 34,500 $ 25,100 5.31,100 $ 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. Required: Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 >