1. Need missing boxes The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales andexpenses for the past quarter follow:RacingBikes$934,000 $267,000 $408,000 $ 259,000ØDirtBikesMountainBikesTotalSalesVariable manufacturing and sellingexpensesContribution marginFixed expenses:Advertising, traceableDepreciation of special equipmentSalaries of product-line managersAllocated common fixed expenses*Total fixed expenses478,000117,000206,000155,000456,000150,000202,000104,00069,20043,000114,100186,800413,100 122,10040,3007, 20038,20081,600167,300$ 42,900 $ 27,900 $ 34,700 $(19,700)8,60020,10040,00053,40020,30015,70035,90051,800123,700Net 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 notthe 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-runprofitability of the various product lines.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?Financial (disadvantage) per quarterRequired 1Required 2 > *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 whethe line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wRequired: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 theprofitability of the various product lines.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare a properly formatted segmented income statement that would be more useful to management in assessing thelong-run profitability of the various product lines.TotalsDirt BikesMountain Bikes Racing BikesSales934,000 $267,000 $408,000 $259,000Variable manufacturing and selling expensesContribution margin (loss)934,000267,000408,000259,000Traceable fixed expenses:Advertising, traceableDepreciation of special equipmentSalaries of the product line managers35,900Total traceable fixed expenses35,900Product line segment margin (loss)934,000$267,000 $408,000 $223,100Common fixed expenses186,800Net operating income (loss)$747,200

Product level income statement states contribution margin (excess of revenue over variable costs) at…

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the profitability of the various product lines. Complete this question by entering your answers in the tabs below. 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. Totals Dirt Bikes Mountain Bikes Racing Bikes Sales $4 934,000 $ 267,000 $ 408,000 S 259,000 Variable manufacturing and selling expenses Contribution margin (loss) 934,000 267,000 408,000 259,000 Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers 35,900 Total traceable fixed expenses 35,900 Product line segment margin (loss) 934,000 $ 267,000 $ 408,000 2$ 223,100 Common fixed expenses 186,800 Net operating income (loss) 24 747,200