Exercise $13-15($Algo$)$ Dropping or Retaining a Segment $[$LO$13-2]$

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 follows:

$\backslash$table$[[\backslash$table$[[$Thalassines Kataskev$],[$Income Statement$-$Bi$],[$For the Quarter Ended$]],,],[\{$

$\backslash$table$[[$Sales$],[$Variable expenses:$]]\}],[],[$Variable manufacturing expenses,,$],[\backslash$table$[[$Sales commissions$],[$Shipping$]],\backslash$table$[[47,000],[12,000]],],[\backslash$table$[[$Shipping$],[$Total variable expenses$]],,187,000],[\{$

$\backslash$table$[[$Contribution margin$],[$Fixed expenses:$]]\}],[],[\backslash$table$[[$Advertising $($for the bilge pump product line$)],[$Depreciation of equipment $($no resale value$)]],114,000,],[,\backslash$table$[[37,{000}^{**}$