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:

	Total	Dirt Bikes	Mountain Bikes	Racing Bikes
Sales	$ 934,000	$ 270,000	$ 405,000	$ 259,000
Variable manufacturing and selling expenses	472,000	118,000	199,000	155,000
Contribution margin	462,000	152,000	206,000	104,000
Fixed expenses:
Advertising, traceable	69,700	8,900	40,100	20,700
Depreciation of special equipment	44,400	20,800	7,700	15,900
Salaries of product-line managers	115,400	40,600	39,000	35,800
Allocated common fixed expenses*	186,800	54,000	81,000	51,800
Total fixed expenses	416,300	124,300	167,800	124,200
Net operating income (loss)	$ 45,700	$ 27,700	$ 38,200	$ (20,200)

*Allocated on the basis of sales dollars.

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?