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 points Dirt Mountain Racing Total Bikes Bikes Bikes $933, eee $268,00 $ 406,00 $ 259, eee 469, eee 119,899 195,00 155, eee 464, eee 249, aaa 211,888 184, eee ebook Variable manufacturing and selline expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product line managers Allocated cannon fixed expenses Total fixed expenses Net operating income (loss) 7e, lee 8,402 48,788 21, eee 43.zee 23.633 7.499 15.zee 113,4ee 42,102 3 8388 35, eee 186,6ee 53,680 81,280 51, see 413, see 122,702 167,688 123, see 5e, zee $ 25,300 $ 43,488 $(19,5ee) Hint $ Print "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. References Required: 1. What is the financial advantage (clisadvantage) 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 (disadvantage) per quarter $ (8.300) Required 1 Required 2 >