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 Racing Total Bikes Bikes Bikes Sales 924,000 262,000 408,000 254,000 Variable manufacturing and selling expenses 470,000 115,000 202,000 153,000 Contribution margin 454,000 147,000 206,000 101,000 Fixed expenses: 40,300 20,700 7,600 15,300 Advertising, traceable 69,900 8,900 43,200 20,300 115,600 40,300 Depreciation of special equipment 38,700 Salaries of product-line managers 36,600 Allocated common fixed expenses 184,800 52,400 81,600 50,800 413,500 121,900 168,200 123,400 Total fixed expenses 40,500 25,100 37,800 (22,400) Net operating income (loss) "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: 1a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign