Req 1 & 3 please! All answers I have filled in on income statement so far have been marked as correct. Thanks!

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 $ 928,000 463,000 465,000 Dirt Bikes $ 268,000 111,000 157,000 Mountain Bikes $ 408,000 196,000 212,000 Racing Bikes $ 252,000 156,000 96,000 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 (loss) "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. 69,900 8,600 43,600 20,700 115,600 41,000 185,600 53,600 414,700 123,900 $ 50,300 $ 33,100 $ 44,200 $ (27,000) 40,500 7,400 38,300 81,600 167,800 20,800 15,500 36,300 50,400 123,000 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. Required 1 Required 2 Required 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. Sales Variable manufacturing and selling expenses Contribution margin (loss) Traceable fixed expenses: Advertising, traceable Total traceable fixed expenses Product line segment margin (loss) Common fixed expenses Depreciation of special equipment Salaries of the product line managers Sales Variable manufacturing and selling expenses Totals uired 2 0 0 0 0 Dirt Bikes Mountain Bikes Racing Bikes $ 0 0 0 $ Required 3 0 0 0 $ 0 0 0