4a

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: "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wams a recommenidation as to whecher or not the line should.be discontinued the special equipment used to produce racing bikes hos no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Raving Bikes? 2. Shovid the production and sale of racing bikes be discontinued? 3. Prepare a propetly formotted segmented income statement that would be more useful to management in assessing the long-run profitobility of the vanious product lines. Complete this question by entering your answers in the tabs below. What is the financial advanthge (d-sadvantage) per quarter of discontinuing the Racing Bikes