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: Dirt Bikes Mountain Racing Bikes $927,000 265,000 407,000 255,000 468,000 115,000 193,000 160,000 Total Bikes Sales iable manufacturin g and selling expenses Va Contribution margin Fixed expenses: 459,000 150,000 214,000 95,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,800 43,200 116,400 185,400 8,500 20,500 40,900 53,000 40,400 7,400 38,600 81,400 20,900 15,300 36,900 51,000 Total fixed expenses 414,800 122,900 167,800 124,100 Net operating income (loss) 44,200 27,100 $46,200 $ (29,100) 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