The question is in order. Please answer these questions from the top down.

Exercise 10-2 Dropping or Retaining a Segment LO10-2] 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 Total Bikes Bikes Bikes Sales 921,000 268,000 401,000 252,000 Variable manufacturing and selling expenses 483,000 115,000 208.000 160,000 Contribution margin 438.000 153,000 193,000 92,000 Fixed expenses: Advertising, traceable 69.800 8,500 40,500 20,800 Depreciation of special equipment 43.500 20.700 7.300 15.500 Salaries of product-line managers 115,000 40,500 38,900 35,600 Allocated common fixed expenses 184,200 53,600 80,200 50,400 412.500 123,300 166,900 122.300 Total fixed expenses 25,500 29,700 26,100 (30,300) Net operating income (loss) *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