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 Mountain Racing Bikes 922,000 $261,000 $403,000 258,000 Bikes Total Bikes Sales Variable ranufacturing and selling 472,000 110,000 205,000157,000 expenses Contribution margin Pixed expenses Advertising,t Depreciation of special equipeent Salaries of product-line managers Allocated cormon fixed expenses Total fixed expenses raceable 70.000 ,500 40,800 20,700 42,900 20,200 7,600 15,100 14,800 40,500 39,900 35,500 184,400 52,200 80,600 51,600 37,900 29,600 30,200 $(21.900) Net operating incone (loss) 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? 2. Should the production and sale of racing bikes be discontinued