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 dirt bikes mountain bikes racing bikes sales $ 919,000 $ 264,000 $ 403,000 $ 252,000 variable manufacturing and selling expenses 461,000 111,000 193,000 157,000 contribution margin 458,000 153,000 210,000 95,000 fixed expenses: advertising, traceable 69,700 8,400 41,000 20,300 depreciation of special equipment 44,100 20,300 7,900 15,900 salaries of product-line managers 115,200 40,700 38,500 36,000 allocated common fixed expenses* 183,800 52,800 80,600 50,400 total fixed expenses 412,800 122,200 168,000 122,600 net operating income (loss) $ 45,200 $ 30,800 $ 42,000 $ (27,600) *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.