The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

	Total				Dirt Bikes				Mountain Bikes				Racing Bikes
Sales	$	931,000			$	268,000			$	404,000			$	259,000
Variable manufacturing and selling expenses		471,000				118,000				196,000				157,000
Contribution margin		460,000				150,000				208,000				102,000
Fixed expenses:
Advertising, traceable		68,900				8,300				40,200				20,400
Depreciation of special equipment		43,100				20,100				7,700				15,300
Salaries of product-line managers		115,200				40,300				38,400				36,500
Allocated common fixed expenses*		186,200				53,600				80,800				51,800
Total fixed expenses		413,400				122,300				167,100				124,000
Net operating income (loss)	$	46,600			$	27,700			$	40,900			$	(22,000)

*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.)