The Regal Cydle 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 Bikes Bikes 936,000 $ 270,000 $ 408,000 $ 258,000 Variable manufacturing and selling expenses 454,000 111,000 90,000 153,000 482,000 159,000 218,000 105,000 Total Bikes Sales Contribution margin Fixed expenses: 70,000 43,500 20,900 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* 8,200 40,90020,900 7,20015,400 115,70040,300 38,50036,900 187,200 54,000 81,60051,600 Total fixed expenses 416,400 123,400 168,200124,800 Net operating income (loss) s 65,600 35,600 49,800 $ (19,800) Allocated on the basis of sales dollars. shown by the racing bikes and wants a Management is concerned about the continued losses 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.) Difference: Net Operating Income Increase or (Decrease) Total If Current Total Racing Bikes Are Dropped Contribution margin (loss) Fixed expenses MacBook Ai