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Ihe Regal Cycle Company manufactures three types of bicycles-a dirt blke, 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 concemed about the continued losses shown by the racing bikes and wants a recommendition as to whether or not the line should be discontinued. The speclat equipment used to produce racing bikes has no resale value and does not weat out. Required: 1. What is the fintinchas advantage (disactvantage) per quarter of discontinuing the Racing Bikes? 2. 5 thould the prodiuction and sale of rocing bikes bet discontloued? 3. Prepale a propetly formatted segmented income staterient that would be more useful to management in assessing the fong riun profitabillyy of the yanous product tines. Cormplete this question by entering your answers in the tabs below. Management is concemed about the continued losses shown by the racing blkes and wants a recommendation as fo whether or not the line should be discontinued. The special equipment used to produce racing blikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long: run profitabillity of the various product lines: Complete this question by entering your answers in the tabs below. What is the financial advantoge (disadvantage) per quarter of discontinuing the Racing tikest

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