EXERCISE 13-15 Dropping or Retaining a Segment LO13-2 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 product line follows: *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 company's total general factory overhead or total Purchasing Department expenses. Differential Analysis: The Key to Decision Making Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? EXERCISE 13-15 Dropping or Retaining a Segment LO13-2 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 product line follows: *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 company's total general factory overhead or total Purchasing Department expenses. Differential Analysis: The Key to Decision Making Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line