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 $ 921,000 $ 265,000 $405,000 $ 251,000 Variable manufacturing and selling expenses 480,000 116,000 210,000 154,000 Contribution margin 441,000 149,000 195,000 97,000 Fixed expenses: Advertising, traceable 69,300 8,400 40,700 20,200 Depreciation of special equipment 44,000 20,900 7.900 15,200 Salaries of product-line managers 113,500 40,200 38,200 35, 100 Allocated conton fixed expenses. 184,200 53,000 81,000 50,200 Total fixed expenses 411,000 122,500 167,800 120, 700 Net operating incone (loss) $ 30,000 $ 26,500 $ 27,200 $ (23,700) *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? Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO Required 1 Required 2 Required 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 Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)