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 $ 934,000 473,000 Dirt Bikes 461,000 $ 268,000 111,000 157,000 Mountain Bikes $ 407,000 203,000 204,000 Racing Bikes $ 259,000 159,000 100,000 69,300 8,600 40,500 20,200 43,200 20,200 7,900 15,100 114,700 40,400 38,100 36,200 186,800 53,600 81,400 51,800 414,000 122,800 167,900 123,300 $ 47,000 $ 34,200 $ 36,100 $ (23,300) 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? > Answer is not complete. 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? Financial advantage per quarter $ 15,300 < Required 1 Required 2 >