The Regal Cycle Company manfactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data 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 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: 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. The Regal Cycle Company manfactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: \begin{tabular}{rrrr} Total & Dirt Bikes & MountainBikes & Racing Bikes \\ $96,000 & $263,000 & $407,000 & $256,000 \\ 467,000 & 118,000 & 190,000 & 159,000 \\ \hline 459,000 & 145,000 & 217,000 & 97,000 \\ \hline 70,300 & 8,500 & 41,000 & \\ 43,500 & 20,700 & 7,300 & 20,800 \\ 114,900 & 40,100 & 38,900 & 35,500 \\ 185,200 & 52,600 & 81,400 & 51,200 \\ \hline 413,900 & 121,900 & 168,600 & 123,400 \\ \hline$45,100 & $23,100 & $48,400 & $(26,400) \\ \hline \end{tabular}