ucation.com/ext/map/index.html?_con-con&external_browser=0&launchurl=https%253A%252F%252Fims.mheducation.com/252Fmghmid ube Maps Men vs. Women t1 Saved 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 Bike lacing Bikes Sales $ 921,000 $ 263,000 $402.000 5 256,000 Variable manufacturing and selling expenses 475,000 115.000 201.000 359,000 Contribution margin 446,000 148.000 261.000 37.000 Fixed expenses Advertising, traceable 70,100 8.400 46,800 20,500 Depreciation of special equipment 43,600 20,300 9,700 15,600 Salaries of prodot-line manager 113,900 40,200 38,300 35,400 Allocated common fixed expenses 184 200 52.500 60.400 52.200 Total fixed expenses 411,800 122.500 162200 123,200 Het operating income foss) 34.200 $ 26,500 $ 53,800 $ 26,100) *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 Complete this question by entering your answers in the tabs below. Requiredt Required Reeds What is the inancial advantage disadvantager cuarter of discontinuing the Racinia Bikes