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 Bikes Tital $ 924,000 473,eee 451,eee Dirt Mountain Racing Bikes Bikes $266,099 $ 403,$ 255,000 117,eee 201,eee 155, eee 149,888 202,eee 1ee, eee 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) 69.809 44,200 115,400 184,800 414, 2ee 36,800 8,7ee 20.709 40,700 53,200 123, 3ee $ 25,780 40,600 20, 500 7,900 15,600 38,200 36,500 80.6ee 51,eee 167,380 123,600 34,700 $(23,600) $ 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 (disadvantage) per quarter of discontinuing the Racing Bikes? 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