The Regal Cycle 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:

Total Dirt Bikes Mountain Bikes Racing Bikes

Sales $ $923,000$ $ $264,000$ $ $404,000$ $ $255,000$

Variable manufacturing and selling expenses $471,000117,000202,000152,000$

Contribution margin $452,000147,000202,000103,000$

Fixed expenses:

Advertising, traceable $69,6008,50040,80020,300$

Depreciation of special equipment $42,90020,4007,30015,200$

Salaries of product$-$line managers $114,60040,20038,60035,800$

Allocated common fixed expenses$*184,60052,80080,80051,000$

Total fixed expenses $411,700121,900167,500122,300$

Net operating income $($loss$)$ $ $40,300$ $ $25,100$ $ $34,500$ $ $(19,300)$

$*$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?