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Chapter 10 Homework 1.00 points Thalassines Kataskeves, S.A of Greece makes marine equipment. The company has been experiencing osses on its bilge pump product lne

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Chapter 10 Homework 1.00 points Thalassines Kataskeves, S.A of Greece makes marine equipment. The company has been experiencing osses on its bilge pump product lne for several years. The most recent quarterty contribution format ncome statement for the bilge pump product line follows: Kataskeves, SA Income Statement-Bilge Pump For the Quarter Ended March 31 $480,000 Variable expenses: Variable manufacturing expenses Sales commissions $138,000 48,000 22,000 Shippling Total variable expenses 208,000 272,000 Contribution margn Flxed expenses: Depreciation ofpment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories 22,000 116,000 46,000 118,000 5,000 47,0001 al fixed expenses 354,000 Net operaing loss 082,000 Common costs allocated on the basis of machine hours 1Common costs allocated on the basis of sales dolars. Discontining the bilge pump product ine would not aflect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses Required a Compute the increase or decrease of net operating income if the product Ine is continued or discontinued (Decreases should be indicated by a minus sign) 8

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