$ 270,000 461,000 114,000 Dirt Bikes Mountain Bikes $ 405,000 193,000 Racing Bikes $ 251,000 154,000 465,000 156,000 212,000 97,000 69,400 8,400 40,200 20,800 44,500 20,700 7,900 15,900 115,800 40,200 38,800 36,800 185,200 54,000 81,000 50,200 414,900 123,300 167,900 123,700 $ 50,100 $ 32,700 $ 44,100 $ (26,700) Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) Total $ 926,000 "Allocated on the basis of sales dollars. 2 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 discontinuing the Racing Bikes? Put in a negative number with a "-" sign to indicate a financial disadvantage. 2. Should the production and sale of racing bikes be discontinued? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 1 Required 2 >