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 $ 922,000 482,000 Dirt Bikes $ 269,000 118,000 151,000 Mountain Bikes $ 402,000 207,000 Racing Bikes $ 251,000 157,000 440,000 195,000 94,000 69,300 8,200 41,000 20,100 44,100 20,600 7,900 15,600 115,200 40,700 38,500 36,000 184,400 53,800 80,400 50,2001 413,000 123,300 167,800 121,900 $ 27,000 $ 27,700 $ 27,200 $ (27,900) 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? Yes No