The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a ra expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Bikes Bikes $ 923,000 $263,000 $ 402,000 $ 258,000 472,000 118,000 197,000 157,000 451,000 145,000 205,000 101,000 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) 70,300 8,400 41,000 20,900 43,400 20,600 7,300 15,500 115,100 40,300 38,800 36,000 184,600 52,600 80,400 51,600 413,400 121,900 167,500 124,000 $ 37,600 $ 23,100 $ 37,500 $(23,000) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommen the line should be discontinued. The special equipment used to produce racing bikes has no resale value 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 i profitability of the various product lines. Complete this question by ente the tabs below. Required 1 Required 2 Required Complete this question by entering your answers 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 assess run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses Product line segment margin (loss) Common fixed expenses Net operating income (loss)