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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

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 $ 925,000 $ 264,000 $ 405,000 $ 256,000
Variable manufacturing and selling expenses 477,000 117,000 204,000 156,000
Contribution margin 448,000 147,000 201,000 100,000
Fixed expenses:
Advertising, traceable 69,600 9,000 40,400 20,200
Depreciation of special equipment 43,700 20,700 7,500 15,500
Salaries of product-line managers 114,700 40,700 38,200 35,800
Allocated common fixed expenses* 185,000 52,800 81,000 51,200
Total fixed expenses 413,000 123,200 167,100 122,700
Net operating income (loss) $ 35,000 $ 23,800 $ 33,900 $ (22,700)

*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?

I know its a financial disadvantage but can't figure out how much

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