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: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Total Dirt Bikes $ 925,000 463,000 $ 268,000 119,000 462,000 149,000 Mountain Bikes $ 406,000 190,000 216,000 Racing Bikes $ 251,000 154,000 97,000 70,100 8,700 40,600 20,800 43,700 20,300 7,700 15,700 114,300 40,600 38,700 35,000 185,000 53,600 81,200 50,200 413,100 123,200 168,200 121,700 $ 48,900 $ 25,800 $ 47,800 $ (24,700) 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?