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Halton Cycle sells a variety of bicycles: Mountain, Road, and Leisure bikes. Sales of the Leisure bikes have fallen off. The following information is available:

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Halton Cycle sells a variety of bicycles: Mountain, Road, and Leisure bikes. Sales of the Leisure bikes have fallen off. The following information is available: Mountain Leisure Road Sales revenue $225,000 $250,000 $975,000 Variable costs $112,500 $212,500 $600,000 Fixed costs $50,000 $41,500 $210,000 Operating income $62,500 -$4,000 $165,000 If the Leisure bike line is dropped, the $41,500 of fixed cost is avoidable. Calculate the impact on operating income if the Leisure bike line is dropped and answer the following questions. If the Leisure bike line is dropped, operating income would ________________ . Input the word INCR for increase or DECR for decrease. 'i/ by $_WW_MM___W_.WMM- Indicate the dollar amount of the increase or decrease. If the Leisure bike line is dropped, operating income would Input the word INCR for increase or DECR for decrease. A by $ Indicate the dollar amount of the increase or decrease. Input your answer as a positive number. 10

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