The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. Data on saies and expenses for the past quarter follow: Aillocated on the basis of sales dollars. Martagement 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 spocial equpment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the firancial 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 sepmented income statement that would be more useful to managem int in assessing the long-run profitability of the various product lines