e Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and penses for the past quarter follow: Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 928, 000 $ 264,000 $ 409, 000 $ 255,000 Variable manufacturing and selling expenses 477,900 116, 000 208, 600 153,090 Contribution margin 451, 000 148, 060 201, 006 102,000 Fixed expenses: Advertising, traceable 69, 100 8, 500 40, 400 20, 200 Depreciation of special equipment 43, 800 20,900 7, 700 15 , 200 Salaries of product-line managers 114, 700 40, 900 38, 100 35,700 Allocated common fixed expenses* 185, 600 52, 800 81, 800 51,000 Total fixed expenses 413, 200 123, 100 168, 060 122, 100 Net operating income (loss) $ 37, 800 $ 24, 900 $ 33, 600 $ (20,100) llocated on the basis of sales dollars. anagement is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or e line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. equired: What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Should the production and sale of racing bikes be discontinued? lamented income statement that would be more useful to management in assessing the long-r