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 Total Bikes Bikes Bikes $ 919,000 $264,000 $400,000 $255,000 Sales Variable manufacturing and selling expenses 458.000 114,000 192,000 152,000 Contribution margin 150,000 208,000 103,000 Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 70,000 43,000 115,200 183,800 8,400 20,400 40,600 52,800 40,900 7,400 38,200 80,000 20,700 15,200 36,400 51,000 Total fixed expenses 412,000 122,200 166,500 123,300 Net operating income (loss) $ 49,000 $ 27,800 $ 41,500 $ (20,300) *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