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) *Allocated on the basis of sales dollars. Total $ 923,000 Dirt Bikes Mountain Bikes $ 407,000 Racing Bikes $ 253,000 152,000 474,000 449,000 $ 263,000 114,000 149,000 208,000 199,000 101,000 70,200 8,500 40,900 20,800 43,600 21,000 7,200 15,400 114,800 40,200 38,500 36,100 184,600 52,600 81,400 50,600 413,200 122,300 168,000 122,900 $ 35,800 $ 26,700 $ 31,000 $ (21,900) Management is considering discontinuing the racing bikes. 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? ces 2. Should the production and sale of racing bikes be discontinued?