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:

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 Mountain Racing Bikes $ 923,000 263,000 $ 405,000 255,000 477,000 112,000 206,000 159,000 Dirt Bikes Total Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses 446,000 151,000 99,000 96,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,000 42,900 115,000 184,600 8,200 20,500 40,200 52,600 40,600 7,100 39,000 81,000 20,200 15,300 35,800 51,000 Total fixed expenses 411,500 121,500 167,700 122,300 Net operating income (loss) S 34,500 S 29,500 S 31,300 $ (26,300) 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