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: Total $ 930,000 Racing Bikes Sales Rountain Bikes $409,000 201,000 Dirt Bikes $ 265,000 113.000 Variable manufacturing and selling expenses 470.000 $256,000 156,000 Contribution margin Fixed expenses: 460,000 352 000 208,000 100,000 Advertising, traceable. 69,600 8.600 28,600 43,900 20,900 15,500 Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses 114,900 48,900 35.500 $3,000 $1,200 186,000 414,400 123,400 168,200 122,800 Net operating income (loss) $ 45,600 $28,600 $39,500 $(22,800) "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 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 >