The Regal Cycle Company manufactures three types of bicycles_- 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 do yars. Marhogement is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether of not the line show be discontrued. The spectal equipment used to produce racing bikes has no resale value and does not wear cut. Required: 1. What is the finatical advantage (disadvantaged per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of ricirig blices be discontinued? 3. Prepare a propelly formatted segmented income statement that would be more useful to monagement in assessiog me long: profitabilisy of the various product linest