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10 Thalassines Xatankeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses Sales commissions Variable manufacturing expenses ts Shipping Total variable
10 Thalassines Xatankeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses Sales commissions Variable manufacturing expenses ts Shipping Total variable expenses Contribution margin elook Fixed expenses: Print References Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss *Common costs allocated on the basis of machine-hours. $137,000 44,000 $410,000 15,000 196,000 214,000 25,000 119,000 40,000 128,000 13,000 50,000 375,000 5(161,000) Check my work +Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line 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 product line
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