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: Racing Mountain Dirt Total Bikes Bikes Bikes Sales 923,000 262,000 408,000 253,000 Variable manufacturing and selling expenses 460,000 112,000 195,000 153,000 Contribution margin 463,000 150,000 213,000 100,000 Fixed expenses: 20,900 70,500 8,900 Advertising, traceable 40,700 44,000 20,400 Depreciation of special equipment 7,700 15,900 114,600 38,700 35,300 40,600 Salaries of product-line managers Allocated common fixed expenses 184,600 52,400 81,600 50,600 Total fixed expenses 413,700 122,300 168,700 122,700 Net operating income (loss) 49,300 27,700 44,300 (22,700) *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: la. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.)