Exercise 13-2 (Algo) Dropping or Retaining a Segment [LO13-2] The Regal Cycle Compary manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike Data on sales and expenses for the past quarter followi Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing blkes and wants a recommendation as to whether or nos 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. Required; 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing tikes? 2. Should the production and sale of racing blkes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the locis profitability of the various product lines Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) per quarter of discontinuing the pacing Bikes? Prepare a properly formatted segmented income statement that would be more useful to management in asnessing the isng-run profitabiaty of the various product lines