The Franklin Bicycle 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

Dirt Bikes

Mountain Bikes

Racing Bikes

Total

Sales

$$90,000$

$$150,000$

$$70,000$

$$310,000$

Variable manufacturing and selling expenses

$27,000$

$60,000$

$40,000$

$127,000$

Contribution Margin

$$63,000$

$ $90,000$

$$30,000$

$$183,000$

Fixed expenses

Advertising

$10,000$

$14,000$

$15,000$

$39,000$

Depreciation of special equipment

$6,000$

$9,000$

$2,000$

$17,000$

Salaries of product line managers

$12,000$

$13,000$

$18,000$

$43,000$

Allocated common fixed expense

$18,000$

$30,000$

$4,000$

$52,000$

Total fixed expenses

$$46,000$

$$66,000$

$$39,000$

$$151,000$

Net operating income $($loss$)$

$$17,000$

$$24,000$

$ $(9,000)$

$ $32,000$

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. Should production and sale of the racing bikes be discontinued? Explain. Show computations to support your answer.