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. Sales Total $918, see 460, eee 458,000 Dirt Mountain Racing Bikes Bikes Bikes $265,000 $402,00 $ 251, eee 119,00 191,000 15e,eee 146,099 211,600 101,600 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) 7e, lee 8, 4ee 42,9ee2e,40e 115,800 46,800 183.6ee53eee 412, 4ee 122,6ee 45,688 $ 23,400 $ 41, Beeze, zee 7,2ee 15,3ee 38.000 36.100 se, cee5e, 2ee 167, See 122,3ee 43,5ee $(21,3ee) $ "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 1 Required 2 > Hy vires veuiscontinued 3. Prepare a property 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 Should the production and sale of racing bikes be discontinued res ONO Prev 1 of To w ers in the tabs below. Required 1 Required 2 Required 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)