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	$ 922,000	$ 267,000	$ 401,000	$ 254,000
Variable manufacturing and selling expenses	481,000	114,000	210,000	157,000
Contribution margin	441,000	153,000	191,000	97,000
Fixed expenses:
Advertising, traceable	69,700	8,200	40,700	20,800
Depreciation of special equipment	43,200	20,200	7,400	15,600
Salaries of product-line managers	115,500	40,100	38,600	36,800
Allocated common fixed expenses*	184,400	53,400	80,200	50,800
Total fixed expenses	412,800	121,900	166,900	124,000
Net operating income (loss)	$ 28,200	$ 31,100	$ 24,100	$ (27,000)

*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?