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 Mountain Total Bikes Racing nikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable 5:927,000 $200,000 $ 405,000 $250,000 450,000 115,000 193,000 151,000 4680 151,000 212,000 105,000 70,500 40,900 21,000 Depreciation of special equipment 43,600 20,600 15,200 Salaries of prolact 1 managers 114,700 40,300 18,500 35,900 Allocated common fixed expenses 185,400 53,200 1,000 51,200 fotal fiand expense 414,200 122,700 fort operating income (loss) 53,000 $20,300 $43,000 $18,100) "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? 2 Should the production an