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	$ 924,000	$ 264,000	$ 404,000	$ 256,000
Variable manufacturing and selling expenses	461,000	114,000	197,000	150,000
Contribution margin	463,000	150,000	207,000	106,000
Fixed expenses:
Advertising, traceable	70,100	8,800	40,400	20,900
Depreciation of special equipment	43,500	20,200	7,700	15,600
Salaries of product-line managers	114,000	40,300	38,100	35,600
Allocated common fixed expenses*	184,800	52,800	80,800	51,200
Total fixed expenses	412,400	122,100	167,000	123,300
Net operating income (loss)	$ 50,600	$ 27,900	$ 40,000	$ (17,300)

*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?