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 Bikes Bikes Total $ 927000 S 477000 Bikes s9272000 s270000 $ 401000 $256,000 Sales ts Variable manufacturing and selling expenses 16,000 204,000 157,000 04:56:44 Contribution margirn 450,000 154,000 197000 99,000 Fixed expenses: Advertising, traceable Depreciation of special equipment 70,800 9,000 40,800 21,000 43,800 7,100 15,900 f product-line managers 114,800 40.400 38,400 36,000 Allocated common fixed expenses 185,400 54.000 80,200 51,200 20,800 124.200 166,500 124100 Total fixed expenses Net operating income (loss) $ 35.200 $29.800 S 30,500 $ (25,100) 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 a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.) Total If Racing Bikes Are Dropped Difference: Net Operating Current Total ?Prey 10ol Oea9 ?@ A8