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 Bikesll Bikes Bikes Mountain Racing Total Sales Variable manufacturing and selling 919,000 $262,000 401,000 256,000 467,000 113,000 198,000 156,000 expenses Contribution margin Fixed expenses: ook 452,000 149,000 203,000 100,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* int 68,7008,20040,200 20,300 3,10020,400,20015,500 115,80040,900 38,10036,800 51,200 411.400121.900 165,700 123,800 $ 40,600 $27,100 $ 37,300$(23,800) 183.8002,40080,200 Total fixed expenses Net operating income (lo88) Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wantsta 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