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: "Allocated on the bosis of sales dollars. Monagement 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 volue 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 monapement in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below