The Regal Cycle Company manufactures three types of bicycles-aditbike, a mountain bike, and a racing tike. Data on sales and expenses for the past quarter follow: Dirt Mountain hacing Total Bikes Bikes $ 23,000 $267,000 $405,000 250,000 470,000 160.000 150,000 206,00 20 Sale Variable manufacturing and selling expenses Contribution sain Fixed wees Advertising, traceable Depreciation of special ruiment Salaries of product line inanagers Allocated common Fixed expenses Total fed expenses Net operating income (los) 69,000 5.600 40,200 20,200 43,900 20,400 7.500 15,00 115,200 40,70 38,100 36,400 16, $1,400 $1,000 50.200 412, 166,300 122, 100 $ 41,000 $2,900 $19,200 $1,100) "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. heducation.com/ext/map/index.html?con conexternal browserslaunchurl=http%253A%252F%252Fims.meducation.com Homework Management is concerned about the continued losses shown by the racing bikes and wants a recommendatic the line should be discontinued. The special equipment used to produce racing bikes has no resale value and 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 a 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 Prey 1 of 3 !!! Next > earch O