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: Dirt Mountain Racing Total Bikes Bikes Bikes $ 930,000 $263,000 $ 409,000 $ 258,000 454,000 111,000 192,000 151,000 476,000 152,000 217,000 107,000 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 8,100 40,500 20,500 43,700 20,400 7,500 15,800 116,300 41,000 38,600 36,700 186,000 52,600 81,800 51,600 415, 100 122, 100 168,400 124,600 $ 60,900 $ 29,900 $ 48,600 $ (17,600) "Allocated on the basis of sales dollars. nces 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 > Complete this question by entering your an Required 1 Required 1 Required 2 Required 2 Required 3 required 3 Should the production and sale of racing bikes be Yes ONO