common fixed expense?

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing th profitability of the various 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-r profitability of the various product lines. The Regal Cycie Compony manufactures three types of bicycies -a dirt bike. a mountain bike, and a racing bike. Bata on sales and expenses for the past quarter follow: -Allocated on the basis of sales dolfars. Management 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 racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontiriuing 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 profitability of the various product lines