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	$ 934,000	$ 270,000	$ 410,000	$ 254,000
Variable manufacturing and selling expenses	467,000	116,000	193,000	158,000
Contribution margin	467,000	154,000	217,000	96,000
Fixed expenses:
Advertising, traceable	69,000	8,200	40,400	20,400
Depreciation of special equipment	43,200	20,400	7,400	15,400
Salaries of product-line managers	114,300	40,300	38,700	35,300
Allocated common fixed expenses*	186,800	54,000	82,000	50,800
Total fixed expenses	413,300	122,900	168,500	121,900
Net operating income (loss)	$ 53,700	$ 31,100	$ 48,500	$ (25,900)

*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?