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:

The following information applies to the questions displayed below.] 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 Bikes Mountain Bikes Racing Bikes $252,000 Total Sales $917,000 $263,000 $402,000 471,000 446,000 146,000 206,000 117,000 196,0 00 158,000 94,000 Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,800 8,400 40,700 20,700 15,800 43,600 116,100 178,900 408,400 20,400 7,400 38,700 36,900 80,300 46,200 167100 119,600 $37,600 $24,300 38,900 $(25,600) 40,500 52,400 121,700 Allocated on the basis of sales dollars Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. value 10.00 points Requirement 1 (a) What is the amount of the change in net income if the racing bikes is dropped? (Input the amount as positive value. Omit the "$" sign in your response.) (Click to select) in net operating income $. (b) Should the racing bikes program be discontinued? (Click to select)