The Regal Cycle Company manufactures three types of blcycles-dirtbike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Check my work Variable manufacturing and selling expenses Contribution margin Fixed expenses Milvertising, traceable Depreciation of wpecial equipment Halarles of product line manager Allocated common fixed expenses Total fixed expense Met operating income (los) BERS Total 0010,000 $361,000 5401,600 251,600 467.000 110,000 193,000 156.000 10000000 100.000 $5,000 70,100 8,700 40,900 30,500 44,000 20,900 7.900 15,200 116.000 40,600 30,500 36,900 182.800 52,200 19,400 50,200 613,900 122,400 1627700 122,400 $ 34,100 20,600 41,300 (27,800) "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 property 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 blkes? Complete this question by entering your answers in the tabe below. Required 1 Required 2 Required 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. Totale Dirt Bikes Mountain Bike Racing Bikes Contribution margin (loss) Traceable fixed expenses 0 0 0 0 0 0 0 Total traceable fixed expenses Product line segment margin (loss) 0 $ 0 $ 0 0 Net operating income (loss) $