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 Sales $924,000 $263,000 $ 402,000 $ 259,800 Variable manufacturing and selling 457,000 112,000 194,000 expenses 151,000 Contribution margin 467,000 151,000 208,000 108,000 Fixed expenses: Advertising, traceable 69, 700 8,900 40,300 20,500 Depreciation of special equipient 42,900 20,100 7,500 15,300 Salaries of product-line managers 113,600 40,100 38,100 35,400 Allocated common fixed expenses 184,800 52,600 80,400 51,800 Total fixed expenses 411,000 121,700 166,300 123,000 Net operating income (loss) $ 56,000 $ 29,300 $ 41,708 $(15,000) "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 property 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 2 > J. Flupalu a properly Formatted segmented Income statement that would be more useful to management in profitability of the various product lines. 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 assessing to run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)