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	$ 932,000	$ 268,000	$ 405,000	$ 259,000
Variable manufacturing and selling expenses	471,000	119,000	194,000	158,000
Contribution margin	461,000	149,000	211,000	101,000
Fixed expenses:
Advertising, traceable	69,700	8,700	40,400	20,600
Depreciation of special equipment	44,000	20,500	7,600	15,900
Salaries of product-line managers	115,200	40,300	38,900	36,000
Allocated common fixed expenses*	186,400	53,600	81,000	51,800
Total fixed expenses	415,300	123,100	167,900	124,300
Net operating income (loss)	$ 45,700	$ 25,900	$ 43,100	$ (23,300)

*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?