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	$ 919,000	$ 264,000	$ 402,000	$ 253,000
Variable manufacturing and selling expenses	473,000	118,000	203,000	152,000
Contribution margin	446,000	146,000	199,000	101,000
Fixed expenses:
Advertising, traceable	69,700	8,300	40,500	20,900
Depreciation of special equipment	43,800	20,800	7,400	15,600
Salaries of product-line managers	115,200	40,900	39,000	35,300
Allocated common fixed expenses*	183,800	52,800	80,400	50,600
Total fixed expenses	412,500	122,800	167,300	122,400
Net operating income (loss)	$ 33,500	$ 23,200	$ 31,700	$ (21,400)

*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?