A company makes all 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 product line follows:

Marine Company Income StatementBilge Pump For the Quarter Ended March 31
Sales		$ 430,000
Variable expenses:
Variable manufacturing expenses	$ 138,000
Sales commissions	51,000
Shipping	22,000
Total variable expenses		211,000
Contribution margin		219,000
Fixed expenses:
Advertising (for the bilge pump product line)	28,000
Depreciation of equipment (no resale value)	118,000
General factory overhead	41,000*
Salary of product-line manager	113,000
Insurance on inventories	10,000
Purchasing department	56,000
Total fixed expenses		366,000
Net operating loss		$ (147,000)

*Common costs allocated on the basis of machine-hours.

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 companys total general factory overhead or total Purchasing Department expenses.

Required:

What is the financial advantage or disadvantage of discontinuing the bilge pump product line?