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 Mountain Racing Total Bikes Bikes Bikes $ 926,000 $263,000 $ 406,000 $ 257,000 472,000 118,000 197,000 157,000 454,000 145,000 209,000 100,000 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 (1088) 69,000 8,400 40,300 20,300 43,600 20,400 7,300 15,900 116,600 41,000 38,700 36,900 185,200 52,600 81,200 51,400 414,400 122,400 167,500 124.500 $ 39,600 $ 22,600 $ 41,500 $(24,500) "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. 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