Total	Dirt Bikes	Mountain Bikes	Racing Bikes
Sales	$ 924,000	$ 266,000	$ 402,000	$ 256,000
Variable manufacturing and selling expenses	476,000	113,000	205,000	158,000
Contribution margin	448,000	153,000	197,000	98,000
Fixed expenses:
Advertising, traceable	70,100	8,800	40,600	20,700
Depreciation of special equipment	43,700	20,500	7,400	15,800
Salaries of product-line managers	114,400	40,000	38,600	35,800
Allocated common fixed expenses*	184,800	53,200	80,400	51,200
Total fixed expenses	413,000	122,500	167,000	123,500
Net operating income (loss)	$ 35,000	$ 30,500	$ 30,000	$ (25,500)

*Allocated on the basis of sales dollars.

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?