Exercise $11-2($Algo$)$ Dropping or Retaining a Segment $[$LO$11-2]$

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:

$\backslash$table$[[,,,$Mountain,$],[,$Total,Dirt Bikes,Bikes,Racing Bikes$],[$Sales$,$$$924,000,$$$264,000,$$$405,000,$$$255,000$

Required:

$1.$ What is the financial advantage $($disadvantage$)$ per quarter of discontinuing the racing bikes?

$2.$Prepare a properly segmented income statement that would be more useful to management in assessing the long$-$run profitability of the various product lines.