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 924,000 266,000 407,000 251,000 Variable manufacturing and selling expenses 477.000 3.000 205.000 59.000 447,000 53.000 202,000 92,000 Contribution margin Fixed expenses: Advertising, traceable 69.000 8.300 40.400 20,300 Depreciation of special equipment 44,300 20,700 7,700 5.900 Salaries of product-line managers 11 5.200 40,600 38,300 36.300 Allocated common fixed expenses* 184,800 53.200 81,400 50.200 Total fixed expenses 413,300 22,800 67,800 22,700 33,700 30,200 34,200 (30,700) Net operating income (loss) *Allocated on the basis of sales dollars. Management is concerned about the continued osses 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)