Saved Help Save & Exit Su Check my wo 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 Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 930,00 $ 270,000 Variable manufacturing and selling expenses $ 402,000 $ 258,000 486,000 Contribution margin 118,000 209,000 159, Dee 444,000 152,800 Fixed expenses: 193,000 99,000 Advertising, traceable 70,500 8,600 Depreciation of special equipment 41,600 20,900 43,200 20,900 Salaries of product-line managers 7,200 15,100 115,600 40, 500 Allocated cowon fixed expenses 38,300 36,500 186,000 54,000 Total fixed expenses 80,400 51,600 415,300 124,000 166,900 124.400 det operating income (2015) $ 20,700 $ 25,000 $ 26,100 $ (25,400) 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 Racino Rikos? 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial advantage {disadvantage) per quarter