The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing blke. Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Bikes Total Bikes Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: $ 923,0ee $265,0e0 406,90e 252,00e ,080158,0e0 94,000 473,000 119,000 196 450,000 146,000 210 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 8,7ee 40,28 7,3ee 38,200 81,280 69,600 20,780 15,9ee 36,180 50,400 ,90 123,1ee $ 37,5ee $ 23,5e0 $ 43,1e0 $(29,100) 43,400 2, 28 114,900 4, 60 184,600 53,0ee 412,500 122,500 166 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 blkes and wants a recommendation as to whether or not the line should be discontinued. The special equlpment used to produce racing bikes has no resale value and does not wear out. Requirec 1. What Is the financial advantage (disadvantage) per quarter of discontinulng the Racing Bikes? 2. Should the production and sale of racing blkes 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 varlous product lines. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2>