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: Dirt Mountain Racing Total Bikes Bikes Bikes 5928,000 $270,000 $402,000 $ 256,000 465,000 118,000 193,000 154,000 463,000 152,000 209,000 102,000 Sales variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated commol fixed expenses Total fixed expenses Not operating income (Loss) 70.500 8,800 40,900 20,800 43,800 20,800 7,500 15,500 115,700 40,400 38,500 36,800 185,600 50.000 80,400 51,200 415,600 124,000 167,300 124,300 $ 47,400 $ 28,000 $ 41,700 $(22,300) ances *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 2 Check my work 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. ok Required 1 Required 2 Required 3 nes 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. ok Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? ces Yes NO Required 1 Recureda > 2 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. Ints Totals Dirt Bikes Mountain Bikes Racing Bikes eBook Hot Contribution margin (loss) Traceable fixed expenses Print References Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)