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 Nountain Racing 8 ts Total ilBikea Bikes Bikes Sales Variable manufacturing and selling 926,000 $267,000 402,000 s 257,000 467,000113,000 203,000 151,000 459,000 154,000 199,000 106,000 expensO8 Contribution margin Fixed expensesr eBook Hint Print ferences 69,7008,300 40,800 20,600 Advertising, traceable Depreciation of apecial equipment Salaries of product-line nanagers Allocated common fixed expenses 43,400 20,7007,300 113,600 40,100 38,100 35,400 51,400 411.900122500 166,600122,800 s 47,100 31,500 S 32,400 $(16,800) 185.200 53.4000 400 Total fixed expenses Net operating income (loss) 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