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: 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 Dirt Bikes $ 929,000 476,000 453,000 $ 263,000 116,000 147,000 Mountain Bikes $ 408,000 203,000 205,000 Racing Bike $ 258,000 157,000 101,000 69,000 8,100 40,400 20,500 44,000 20,500 7,800 15,700 114,100 40,400 38,600 35,100 185,800 52,600 81,600 51,600 412,900 121,600 168,400 122,900 $ 40,100 $ 25,400 $ 36,600 $ (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? 2. Should the production and sale of racing bikes be discontinued? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? < Required 1 Required 2 > The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: 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. Mountain Total Dirt Bikes $ 929,000 476,000 453,000 $ 263,000 116,000 147,000 Bikes $ 408,000 Racing Bike $ 258,000 203,000 157,000 205,000 101,000 69,000 8,100 40,400 20,500 44,000 20,500 7,800 15,700 114,100 40,400 38,600 35,100 185,800 52,600 81,600 51,600 412,900 121,600 168,400 122,900 $ 40,100 $ 25,400 $ 36,600 $ (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? 2. Should the production and sale of racing bikes be discontinued? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the production and sale of racing bikes be discontinued? < Required 1 Required 2 >