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 926,000 263,000 405,000 258,000 Variable manufacturing and selling expenses 471,000 119,000 201,000 151,000 Contribution margin 455,000 144,000 204,000 107,000 Fixed expenses Advertising, traceable 69,400 8,500 40,800 20,100 Depreciation of special equipment 43,300 20,300 7,600 15,400 Salaries of product-line managers 115,400 40,400 38,300 36,700 Allocated common fixed expenses 185,200 52,600 81,000 51,600 Total fixed expenses 413,300 121,800 167,700 123,800 41,700 22,200 36,300 (16,800) 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 n o resale value and does not wear out Required la. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign Difference: Net Total If Operating Current Total Racing Bikes Income Are Dropped Increase or (Decrease) 0 0 Contribution margin (loss) Fixed expenses: 0 0 Total fixed expenses 0 0 Net operating income (loss)