Chapter 12 Problems i Saved Help Save & Exit Submit Check my work 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 Dirt Bikes Mountain Racing Bikes Total Bikes 927,000 $263,000 $ 405, 000 259,000 472,000 111,000 205,000 156,000 103,000 5 points Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: 455,000 152,000200,000 Skipped Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* 20,400 15, 300 35,500 51,800 123,000 $ 42,300 $ 29,900 32,400 (20,000) 8,800 20,700 40,000 52,600 412, 700 122,100 70,000 43,800 113,500 185,400 40,800 7,800 38,000 81,000 167,600 Total fixed expenses Net operating income (loss) eBook Hint 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 Print Requirecd References1. 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 1Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes