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 $ 924,000 $ 264,000 $ 407,000 $ 253,000 variable manufacturing and selling expenses 460,000 110,000 200,000 150,000 contribution margin 464,000 154,000 207,000 103,000 fixed expenses: advertising, traceable 69,700 8,700 40,900 20,100 depreciation of special equipment 43,300 20,300 7,400 15,600 salaries of product-line managers 115,200 40,300 38,100 36,800 allocated common fixed expenses* 184,800 52,800 81,400 50,600 total fixed expenses 413,000 122,100 167,800 123,100 net operating income (loss) $ 51,000 $ 31,900 $ 39,200 $ (20,100) *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.