The Wheels R' Us 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 $ 929,000 468,000 $ 269,000 118,000 Mountain Bikes $ 406,000 196,000 Racing Bikes $ 254,000 461,000 151,000 210,000 154,000 100,000 69,700 8,900 40,200 20,600 43,600 20,600 7,400 15,600 114,700 40,700 38,600 35,400 185,800 53,800 81,200 50,800 413,800 124,000 167,400 122,400 $ 47,200 $27,000 $ 42,600 $ (22,400) 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? Put in a negative number with a "." sign to indicate a financial disadvantage. 2. Should the production and sale of racing bikes be discontinued