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 $ 920,000 460,000 460,000 Dirt Bikes $ 268,000 113,000 155,000 Mountain Bikes $ 402,000 191,000 211,000 Racing Bikes $ 250,000 156,000 94,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciatig of special equipment Salaries or product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) 69,300 43,300 116,200 184,000 412,800 $ 47,200 8,700 20,700 40,800 53,600 123,800 $ 31,200 40,200 7,200 38,500 80,400 166,300 $ 44,700 20,400 15,400 36,900 50,000 122,700 $ (28,700) *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: Galinduantagelner quarter of discontinuing the Racing Bikes? 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 2 > Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes O No Prey 1 of 5 HEE 133 Next > EER Prepare a properly formatted segmented income statement that would be more useful to management in assess profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)