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 Mountain talen Total Dixt Bikes Bike Racing Bikes $.922.000 Variable manufacturing and selling expenses $ 260,000 $401,000 5 253,000 429,000 110.000 Contribution margin 205,000 156.000 443,000 150/000 Fixed expenses 196000 9200D Advertising, traceable 69,300 8,400 40,700 20,200 Depreciation of special equipment 43.500 20,500 7.800 15,200 Salaries of product line manager 115,000 40,100 30,100 36,000 Allocated common fixed expenses 164.400 53,660 80,200 50.600 Total Fixed expenses 412.200 122.600 165.000 122.000 Net operating income loss) $ 30,000 $ 27,400 $ 29,200 5 (25.600) 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 he line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 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 orofitability of the various product lines Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 dhe more useful to management in assessing the long-run Required 1 Required 2 Required 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. Tetals Dirt Bikes Mountain Bikes Racing is 0 Contribution margin (s) Traceable fixed expenses 0 Total traceable fixed expenses Product line segment margin (los) $ Not operating income (los) 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 Required 2 > Next