ezto.mteducation.com/hmtpx The Regal Cyle Company manufactures three types of bicycles-a dit bike, a mountan bike, and a racing bke Data on sales and expenses for the past quarter follow Det S 300,000 5 90,000 150 000S 60,000 Variable manufacturing and selling expenses Contibution Fixed expenses Depreciation of special equipment Salaries of product-line managers Alocated common fixed expenses 30,000 23.000 35,000 60,000 10.000 6000 12,000 18,000 14000 9.000 13.000 6,000 8.000 12 000 Total fxed expenses Net operating income (loss) 000 17 000 Allocated on the basis of sales dollars or not the line should be discontinued The special equipment used to produce racing Dses has Management is concemed about the continued losses shown ty the racing bikes and wants a recommendation as to whether and does not wear out Required: 1a What is the impact on net operating income by discontnuing racing bikes? (Decreases should be indicated by a minus sign on net operating income by disconinuing racing bikes? (Decreases should be indicated by a minus sign.) Current Total otal M Racing Operating Income Bikes Are DroppedIncrease or (Decrease) Fbeed expenses Total fixed expenses Net operating income loss) ype here to search