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2 Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencir product line for several years. The most recent quarterly contribution format
2 Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencir product line for several years. The most recent quarterly contribution format income statement for the nts $430,000 eBook $ 125,000 44,000 20,000 189,000 241,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales 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) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total Fixed expenses Net operating loss 21,000 112,000 31,000 125,000 9,000 55,000+ 353,000 $(112,000) "Common costs allocated on the basis of machine-hours. tCommon costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would hav total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line
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