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:

Sales	923,000	263,000	405,000	255,000
Variable Manufacturing & Selinng Expenses	477,000	112,000	206,000	159,000
Contribution Margin	446,000	151,000	199,000	96,000
Fixed Expenses:
Advertising, traceable	69,000	8,200	40,600	20,200
Depreciation of special equipment	42,900	20,500	7,100	15,300
Salaries o fproduct-line managers	115,000	40,200	39,000	35,800
Allocated common fixed expenses*	184,600	52,600	81,000	51,000
Total Fixed Expenses	411,500	121,500	167,700	122,300
Net Operating Income (loss)	34,500	29,500	31,300	(26,300)

*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. Requirement 1: (a) What is the amount of the change in net income if the racing bikes is dropped? (Input the amount as positive value. Omit the "$" sign in your response.) (b) Prepare a segmented income statement