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: points Dirt Total Bikes $ 927,000 $264, eee 474,800 113,000 453,000 151,000 Mountain Racing Bikes Bikes $ 403,000 $ 260, 220 285,000 156,820 198,000 184,800 499,000 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) eBook 69,480 8,800 40,100 20,500 44,000 20,900 7,800 15,300 113,800 40,180 38,400 35, 380 185,480 52,880 88,680 52,880 412,600 122,689 166,900 123, 100 $ 40,400 $ 28,480 $ 31,100 $(19,180) Hint Print *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. References 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 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: Total traceable fixed expenses Product line segment margin (loss) 000 0 $ 0 $ $ Net operating income (loss)