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. 37.000 Mountain Total Dirt Bikes mikes Racing Bikes Sales 5923,000 5. 267,000 $ 402,000 $ 254,000 Variable manufacturing and welling expenses 458,000 120,000 197,000 151,000 Contribution margin 455,000 107.000 205,000 103,000 Fixed expenses Advertising, tramable 70,100 9,000 40,700 20,400 Depreciation of special equipment 43,800 20,600 7,400 15,800 Salaries of product-line snage 115,700 40.500 30,200 Allocated common fixed expenses 184.600 51,400 80,400 50,000 Total fixed expenses 416200 123, 500 165/700 124.000 ut sperating in love) 40.800 $ 25,500 8.38,300 (21,000) "Allocated on the basis of sales dollars. Management is concerned about the continued fosses 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 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing bikes? Required) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? (Required 1 Required) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. Totals Dirt Bikes Mountain Bike Racing Bikes 0 0 0 0 Contribution margin (los) Traceable fixed expenses 0 0 0 Total traceable foed expenses Product line segment margin (109) 0 $ 0 $ $ 0 Net operating income foss) 5 0