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 $925,000 $265,000 $403,000 $ 257,000 Variable manufacturing and 475,000 118,000 201,000 156,000 selling expenses Contribution margin 450,000 147,000 202,000 201,000 Fixed expenses: Advertising, traceable 69,200 8,800 40,300 20,100 Depreciation of special 42,900 20,200 7,400 15,300 equipment Salaries of product-line 114,100 40,500 38,200 35,400 managers Allocated common 185,000 53,000 80,600 51,400 fixed expenses Total fixed 411,200 122,500 166,500 122,200. expenses Net operating $ 38,800 $ 24,500 $ 35,500 $(21,200) income (loss) "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 Required 1 2 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 1 Required 2 >