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 $933,000 $ 270,000 $ 407,000 5 256,000 Variable manufacturing and selling expenses 468.000 110,000 205,000 153,000 Contribution margin 465.000 160,000 202,000 103,000 Fixed expenses Advertising, traceable 69,300 8,200 40,700 20,400 Depreciation of special equipment 44,200 20,900 7,600 15,700 Salaries of product-line managers 113,500 40,100 38,200 35,200 Allocated common fixed expenses 186,600 54,000 81,400 51,200 Total fixed expenses 413.600 123,200 167900 122.500 Net operating incone (lass) $ 51,400 5 36,800 $ 34,100 S (19,500) 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? Financial advantage (disadvantage) per quarter 5 (7700) 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 Contribution margin (loss) Traceable foed expenses 0 0 0 0 Total traceable fixed expenses Product line segment margin (los) o $ 0 $ 0 0$ $ 0 Net operating Income (loss)