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expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Bikes Bikes $ 925,000...

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Accounting

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expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Bikes Bikes $ 925,000 $261,000 $ 409,000 $ 255,000 464,000 111,000 198,000 155,000 461,000 150,000 211,000 100,000 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) 70,100 8,700 40,700 20,700 44,000 20,600 7,800 15,600 114,000 40,300 38,100 35,600 185,000 52,200 81,800 51,000 413,100 121,800 168,400 122,900 $ 47,900 $ 28,200 $ 42,600 $ (22,900) *Allocated on the basis of sales dollars. 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

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