please help!

Exercise 11-2 (Algo) Dropping or Retaining a Segment [LO11-2) 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: Total $ 926,000 462,000 464,000 Dirt Bikes $ 268,000 115,000 153,000 Mountain Bikes $ 405,000 196,000 209,000 Racing Bikes $ 253,000 151.000 102,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers allocated common fixed expenses Total fixed expenses Net operating income (loos) 69, 700 43, 400 116,200 185,200 414,500 $ 49,500 8,400 20,700 40,400 53.600 123,100 $ 29,900 40,900 7.300 38,900 81,000 168, 109 $ 40,900 20,400 15,400 36,900 50,600 123,300 $ (21,300) "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