The Regal Cycle Company manufactures three types of bicycles--a dirt bike, a mountain bike and a facing bike. Data on sales and expenses for the past quarter follow Dirt Hintain Racing Total Bikes Bike Bikes $926,000 $265,000 $403,000 $ 258,000 467,000 113,000 202.000 152.000 459.000 152.000 201 000 105,000 7.600 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) 70,100 8,200 41,000 20,989 44,200 20.900 15,700 114.900 40,400 38,100 36.400 185 200 53,000 80,600 51,660 414,400 122,500 167 300 124,660 $ 44,600 $ 29,500 $ 33,700 $(18,600) "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 weat 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 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessi run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes 0 0 0 Contribution margin (loss) Traceable fixed expenses 0 0 0 0 Total traceable fixed expenses Product line segment margin (loss) 0 $ 0 $ 0 $ 0 Net operating income (loss) $ 0 wa