I he Regai Lycle Company mandactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. ata 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 wants a recommendation as to whether of nol the line should be discontinued. The special equipment used to produce racing bikes has no resale vatue and does not weat oit Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Blkes? 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 manogement in assessing the lang run profitability of the various product lines. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 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 long run profitability of the varlous product lines. Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantade) per quarter of discontinuing the Racing Bikes? 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 profitability of the various product lines: Complete this question by entering your answers in the tabs below. 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 as run profitability of the various product lines