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 $920,000 481,000 Dirt Bikes Mountain Bikes $ 405,000 205,000 Racing Bikes $ 251,000 157,000 439,000 $ 264,000 119,000 145,000 200,000 94,000 69,900 8,900 40,700 20,300 44,000 20,800 7,900 15,300 114,500 40,600 38,600 35,300 184,000 52,800 81,000 50,200 123,100 168,200 121,100 $ 26,600 $ 21,900 $31,800 $ (27,100) 412,400 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? 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? Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers Total fixed expenses Allocated common fixed expenses Net operating income (loss) POURRAI Total Dirt Bikes Bikes $920,000 $264,000 $405,000 Racing Bikes $ 251,000 481,000 119,000 205,000 157,000 439,000 145,000 200,000 94,000 69,900 8,900 40,700 20,300 44,000 20,800 7,900 15,300 114,500 40,600 38,600 35,300 184,000 52,800 81,000 50,200 412,400 123,100 168,200 121,100 $ 26,600 $ 21,900 $ 31,800 $ (27,100) "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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the production and sale of racing bikes be discontinued?