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 Bikes Mountain Racing Bikes $920,000 S 268,000 $ 401,000 $ 251,000 57,000 110,000 193,000 154,000 Total Bikes Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses 463,000 158,000 208,000 97,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,900 44,300 114,700 184,000 8,700 20,800 40,400 53,600 40,700 7,700 38,300 80,200 20,500 15,800 36,000 50,200 Total fixed expenses 412,900 123,500 166,900 122,500 Net operating income (loss) S 50,100 S 34,500 S 41,100 $ (25,500) *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.)