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 dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendotion as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not weat out Required: 1. Whot is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepore a properly formatted segmented income statement that would be more useful to management in asse6.ing the long-run profitability of the various product lines. Complete this question by entering vour answers in the tabs below. What is the finandal advantage (disadvantage) per quarter of discontinuing the Rading Bikes? expenses for the past quarter follow: Wllocated on the basis of sales dollars. Managernent 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 rocing bikes has no resole value and does not wear out Required: 1. What is the financial advontage (disodvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmente income statement that would be more useful to manegement in assessing the longrun Complete this question by entering your answers in the tabs below. Should the production and sale of racing bikes be discontinued? Complete this question by entering your answers in the tabs below. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines