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 $ 924,000 471,000 453,000 $ 261,000 116,000 145,000 Mountain Bikes $ 409,000 202,000 Racing Bikes $ 254,000 207,000 153,000 101,000 70,600 8,700 40,900 21,000 43,200 20,300 7,100 15,800 114,600 40,700 38,200 35,700 184,800 52,200 81,800 50,800 413,200 121,900 168,000 123,300 $ 39,800 $ 23,100 $ 39,000 $ (22,300) 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? < Required 1 Required 2 >