The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Dato on sales and expenses for the past quarter follow Total BikeaB1 Bikes 924,000 $270,000 403,000 251,000 Variable manufacturing and selling473,000 117,000 203,000 153,000 Sales expenses Contribution margin Fixed expenses: 451,000 153,000 200,000 98, 000 8,500 40,600 20,700 44,200 20,700 8,000 15, 500 115,200 40,900 38, 60035,700 184,80054,0000, 60050,200 69,800 Advertising, traceable Depreciation of special equipment Salaries of product-line manager Allocated cormon fixed expenses 14,000 124,10016,8O0 122, Total fixed expenses Met operating incone (loas) 37,000 s 28,900 32,200 (24,100) 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 weor 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