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 $ 926,000 s269,000 478,000 111,000 Bikes $402,000 $255,000 209,000 158,000 Sales Variable manufacturing and selling expenses Contribution margin 448,000 158,000 97,000 Fixed expenses 69,600 9,000 40,400 20,200 7,200 15,700 115,600 40,90038,70036,000 185,200 53,800 80,400 51,000 Advertising, traceable Depreciation of special Salaries of product-line Allocated common fixed 43,300 20,400 equipment managers expenses* Total fixed expenses 413,700 124,100 166,700 122,900 Net operating income (loss) $ 34,300 $33,900 $ 26,300 $ (25,900) 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.)