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 5.933,000 $265,000 $409,800 $ 259,030 Variable manufacturing and selling expenses 464,000 112,900 201,000 151,000 Contribution margin 469,000 153,000 286,000 108,090 Fixed expenses Advertising, traceable 69,400 8,900 40,300 20,200 Depreciation of special equipment 43,800 20,800 7,700 15,300 Salaries of product-line managers 115,100 40,200 38,600 36,300 Allocated common fixed expenses 186,600 53,000 81,800 51.800 Total fixed expenses 414,900 122,900 168, 409 N23,600 Net operating Income (loss) $ 54,100 $30,100 S 39,600 565,696) "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 financtal 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? Financial (disadvantage) per quarter Rupied Required 2 > 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 5933,000 $265,000 $ 409,000 5 259,000 Variable manufacturing and selling expenses 464,000 112,000 281,000 151,000 Contribution bargin 469,000 153,000 208,000 168,000 Fixed expenses: Advertising, traceable 59,400 8,900 40,300 20,200 Depreciation of special equipment 43,800 20,800 7,700 15,380 Salaries of product line managers 115,100 40,200 38,680 36, 380 Allocated common fixed expenses 166,609 53,000 81. See 51,800 Total Fixed expenses 414,960 122,900 168,480 123,600 Het operating income (loss) $ 54,100 $ 30,1805 39,600 5(15,600) "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 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 (cisadvantage) per quarter of discontinuing the Racing Bikes? 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 Roluired 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO A "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: Required 2 Required 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, Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses 0 0 0 0 0 Total traceable fixed expenses Product line segment margin (los) 0 0 $ Ds ols Not operating incon los) 5