The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: TotalDirt BikesMountain BikesRacing BikesSales$ $920,000$$ $263,000$$ $400,000$$ $257,000$Variable manufacturing and selling expenses$475,000118,000204,000153,000$Contribution margin$445,000145,000196,000104,000$Fixed expenses: Advertising, traceable$69,8008,50040,60020,700$Depreciation of special equipment$43,10020,3007,50015,300$Salaries of product$-$line managers$116,20041,00038,70036,500$Allocated common fixed expenses$*184,00052,60080,00051,400$Total fixed expenses$413,100122,400166,800123,900$Net operating income $($loss$)$$ $31,900$$ $22,600$$ $29,200$$ $(19,900)*$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:$1.$ 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.What is the financial advantage $($disadvantage$)$ per quarter of discontinuing the Racing Bikes?