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: Bikes Dirt Mountain Racing Total Bikes Bikes $931,000 $269,000 $402,000 $ 260,000 461.000 116,000 195.000 150.000 470,000 152.000 207.000 110.000 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) 70,180 8,300 40,400 20,900 43,400 20,000 7,300 15,200 113,800 40,400 38,200 35,200 186,200 53,860 80,400 52,000 413.500 123,900 166,300 120,300 $ 56,500 $ 29,100 $ 40,700 $(13,300) "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? 2. Should the production and sale of racing bikes be discontinued