Chapter 11 Homework 15 Saved Help Save & Exit Submit 7 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 product line follows: points Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31, Sales 02:54:40 Variable expenses Variable manufacturing expenses Sales connissions Shipping Total variable expenses eBook Fixed expenses Print References Mc Graw Contribution margin 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 $ 440,000 $130,000 50,000 15,000 195,000 245,000 29,000 110,000 45,000 127,000 9,000 45,000 365,000 $ (120,000) "Common (Indirect) costs allocated on the basis of machine-hours. +Common (indirect) 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 total financial impact of discontinuing the bilge pump product line? (Indicate a negative impact with a negative sign) (Hint: See Example 11-2a in the course packet for guidance) < Prev 7 of 9 Next > Check my work