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. Total $ 927,000 469,000 Dirt Bikes $ 265,000 111,000 Mountain Bikes $ 407,000 Racing Bikes 255,000 199,000 159,000 458,000 154,000 208,000 96,000 68,400 8,100 40,200 20,100 43,800 20,300 7,600 15,900 114,600 40,600 38,500 35,500 185,400 53,000 81,400 51,000 412,200 122,000 167,700 122,500 $ 45,800 $ 32,000 $ 40,300 $ (26,500) 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?