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 $ 380,eee $ 98,eee $ 150, eee $ 60, eee 120,000 27, eee 60,000 33,00 180, eee 63,000 99,000 27,eee Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 30,000 12,88 23,00 6,080 35,000 12,080 68,888 18,00 148,880 46,000 32,298 $ 17,000 $ 14,880 9,800 13,000 30,000 66,00 24,000 $ 6, eee 8, eee 1e, eee 12, see 36, eee (9,800) $ *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 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 Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses 0 0 0 Product line segment margin (loss) 0 s 0 S 0 s 0 Net operating income (loss) $ 0