The Regal Cycle Company manutoctures three types of bicycles-a dirt blke. a mountain bike. and a racing bike Data on sales and expenses foc the past quarter follow: Wllocated on the basis of sales dollars. Maragement is concerned about the continued losses shown by the racing bikes and warits a recommendation as to whetler or not the line should be discontinued. The special cquipment used to proctuce racing bikes has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Alkes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepate a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various prodoct lines. Corpplete this question by entering your answers in the tabs below. 2. Snotha ine prouscuon dia sale or lacing vikes ve usconunued: 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long run profitability of the vatlous product lines. 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-tun profitability of the various product lines