help req. 1-3

The Regal Cycle Company manufactures three types of bicycies-a dirt bike, a mountain bike, and a facing bike, Data on sales and cxpenses for the past gurter tottow: "Allocated on the basis of sales dollars: Manarnment is concerned about the continued losses shown by the rocing bikes and wants a recominendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no tesale value and does not wear out. Required: 1. What is th o financlal advantage (dsodvantage) per quarter of discontinuing the Racing Bikes? Sequired: 2. Strouth the production and salo of racing bukes be discontinued? 3. Prepare o properly formatted segmented income statement thot would be wore useful to management in assessing the long-run profitobility of the various product lines