expenses for the past quarter followe "Allocated on the basts of sales dollats Management is concerned about the continued losses shown by the racirig bikes aid wants a. recommendation as to whether or niot the line should be discontioued. The speclit equipment used to produce racing bikes has no resale value and does not whar out. Required: 1. What bs the firancial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2 Should the production and sale of racing bikes be discontinued? 3. Prepore a properly formated segmented income statement that would be more useful to managemeht in assessing the long rum profitability of the vacious product lines. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-ri profitability of the various product lines