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: Aocated o d expenses $ 37,400 27,000 S 34,100 (24300) Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. bikes and wants a recommendation as to whether or not Required: What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.) Should production and sale of the racing bikes be 2a Prepare a segmented income statement