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 $ 928,000 $266,000 $ 407,000 $ 255,000 468,000 110,000 208,000 150,000 460,000 156,000 199,000 105,000 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) 69,200 8,100 40,800 20,300 43,300 20,700 7,200 15,400 114,700 40,000 38,500 36,200 185,600 53,200 81,400 51,000 412,800 122,000 167,900 122,900 $ 47,200 $ 34,000 $ 31,100 $(17,900) *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: is the financi advantage (disadvantage) per quarter 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