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 $ 932,000 Dirt Bikes 463,000 469,000 $ 269,000 111,000 158,000 Mountain Bikes $ 406,000 194,000 212,000 Racing Bikes $ 257,000 158,000 99,000 70,300 8,700 40,900 20,700 43,500 20,500 7,100 15,900 116,400 40,900 38,800 36,700 186,400 53,800 81,200 51,400 416,600 123,900 168,000 124,700 $ 52,400 $ 34,100 $ 44,000 $ (25,700) 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