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: Total $ 936,000 468,000 468,000 Dirt Bikes $ 268,000 112,000 156,000 Mountain Bikes $ 408,000 197,000 211,000 Racing Bikes $ 260,000 159,000 101,000 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) 69,100 42,900 115,700 187,200 414,900 $ 53, 100 8,200 20,600 40,800 53,600 123,200 $ 32,800 40,600 7,100 38,800 81,600 168, 100 $ 42,900 20,300 15,200 36,100 52,000 123,600 $ (22,600) *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 manag profitability of the various product lines. in assessing the long-run 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 1 Required 2