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 Total $ 923,000 460,000 463,000 Dirt Mountain Racing Bikes Bikes Bikes $265,000 $ 402,000 5 256,000 112,000 197,000 151,000 153,000 205,000 105,000 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) 68.900 3.2ee 43,700 20.600 115,600 40,500 184,600 53,000 412,800 122,300 50,200 $ 30,700$ 10. see 7.900 38,300 80,400 167, 100 37,900 20,200 15,200 36,800 51,200 123,400 $(18,400) $ "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. 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 > Should the production and sale of racing bikes be discontinued? Yes 10 No