463,000 $ 268,000 116,000 152,000 Dirt Bikes Mountain Bikes $ 408,000 191,000 Racing Bikes $ 253,000 159,000 217,000 94,000 69,400 8,300 40,700 20,400 43,900 20,500 7,600 15,800 114,900 40,600 38,500 35,800 185,800 53,600 81,600 50,600 414,000 123,000 168,400 122,600 $ 49,000 $ 29,000 $ 48,600 $ (28,600) 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 $ 929,000 466,000 *Allocated on the basis of sales dollars. 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?