expenses tor the past quarter tollow:

$*$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:

What Is the financlal advantage $($disadvantage$)$ per quarter of discontinuing the Racing Bikes?

Should the production and sale of racing bikes be discontinued?

Prepare a properly formatted segmented income statement that would be more useful to management In assessing the long$-$run

profitability of the varlous 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.

$****$Please answer all steps