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The Regal Cycle Company manufactures three types of bicycles-a dirt bike, mountain bike, and a racing bike Data on sales and expenses for the past

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The Regal Cycle Company manufactures three types of bicycles-a dirt bike, 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 obout the continued losses ohown by the facing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equiprnent used to produce racing bkes has no resale value and does not wear out Required: Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bihes? 2 Should the production and sale of racing blkes be discontinued? 3. Prepare o properly formatted segmented income stotement that would be more useful to management in assessing the long-run Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long profitability of the various product lines

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