The Regal Cycle Company manufactures 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 doltars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the ine 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 property formatted segmented income statement thot would be more useful to management in assessing the long-run Drofitability of the various product lintes. 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 thi profitability of the various product lines. Complete this question by entering your answers in the tabs below. What is the finencial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 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 entaring your answers in the tabs bolow. Should the production and sale of racing bikes be discontinued? Prepare a properly formatted segmented income statement that would be more useful to manogement in assissing the long-run