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:

	Total	Dirt Bikes	Mountain Bikes	Racing Bikes
Sales	$ 931,000	$ 270,000	$ 405,000	$ 256,000
Variable manufacturing and selling expenses	485,000	117,000	210,000	158,000
Contribution margin	446,000	153,000	195,000	98,000
Fixed expenses:
Advertising, traceable	69,000	8,600	40,200	20,200
Depreciation of special equipment	43,800	20,400	7,600	15,800
Salaries of product-line managers	114,100	40,000	38,600	35,500
Allocated common fixed expenses*	186,200	54,000	81,000	51,200
Total fixed expenses	413,100	123,000	167,400	122,700
Net operating income (loss)	$ 32,900	$ 30,000	$ 27,600	$ (24,700)

*Allocated on the basis of sales dollars.

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?