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 $ 930,000 471,000 459,000 $ 266,000 113,000 153,000 Mountain Bikes $ 408,000 204,000 204,000 Racing Bikes $ 256,000 154,000 102,000 69,500 8,800 40,300 20,400 43,800 20,900 7,300 15,600 114,600 40,300 38,100 36,200 186,000 53,200 81,600 51,200 413,900 123,200 167,300 123,400 $ 45,100 $ 29,800 $ 36,700 $ (21,400) 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 >