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 $ 926,000 464,000 462,000 Dirt Bikes $ 266,000 113,000 153,000 Mountain Bikes $ 408,000 197,000 211,000 Racing Bikes $ 252,000 154,000 98,000 69,800 8,700 40,700 20,400 44,000 20,600 7,500 15,900 114,700 40,300 38,000 36,400 185,200 53,200 81,600 50,400 413,700 122,800 167,800 123,100 $ 48,300 $ 30,200 $ 43,200 $ (25,100) 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?