Please answer all parts of the question. Thank You very much for your hard work.

The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Mountain Rs Racing Total 470,000 450,000 Bikes 113,000 155,000 Bikes 199,000 203,000 Bikes 158,000 92,000 Sales 5 920,000 283,000 402,000 250,000 Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, tracesble Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,600 43,200 115,100 184,000 8,600 20,200 40,700 53,600 40,900 7,300 38,000 80,400 20,100 15,700 36.400 50,000 Total fixed expenses 411,900 123,100 1,600 122,200 Net operating income (loss) 5 38,100O 31,900 38,400 (30,200) Allocated on the bssis 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: 1a. What is the impact on net operating income by discontinuing racing bikes (Decreases should be indicated by a minus sign.) Difference: Net Operating Income Total If Current Total Racing Bikes Are Dropped Increase or (Decrease) Contribution margin (loss) Fixed expenses Total fixed expenses Net operating income (loss)