The Regal Cycle Company manufactures three types of blcycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Total niken Bike Bikes $ 925,000 $268,000 $ 407,000 $ 250,000 481,000 113,000 209,000 159,000 444,000 155,000 198,000 91,000 Bales Variable manufacturing and selling expenses Contribution margin Tixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated on fixed expenses Total fixed expenses Not operating income (losa) 70, 100 8,900 40,700 20,500 43,700 20,400 7,600 15,700 114,200 40,600 38,100 35,500 105,000 53,600 81,400 50,000 413,000 123,500 167,800 121,700 $ 31,000 $ 31,500 $ 30,200 $(30,700) "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