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10 Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The

image text in transcribed 10 Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump follows: Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $440,000 02:03:59 Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) \begin{tabular}{rr} $136,000 \\ 52,000 \\ 25,000 \\ \hline & \\ \hline 213,000 \\ \hline 227,000 \end{tabular} General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss 29,000114,00046,000121,00013,00052,000375,000 *Common costs allocated on the basis of machine-hours. Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump

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