Exercise 9-3 Deciding Whether to Drop or Retain a Segment (L01- CC3) 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 Income statement for the bilge pump product line follows: THALASSINES KATASKEVES, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales 950.000 Less: Variable expenses: Variable manufacturing expenses 340,000 Sales commissions 46,00 Shipping 14,000 Total variable expenses 480, eee Contribution margin 550, eee Less: Fixed expenses: Advertising 290.000 Depreciation of equipment (no resale value) 90, eee General factory overhead 115.ee Salary of product-line manager 38,82 Insurance on inventories 18,000 Purchasing department expenses 65,000+ Total fixed expenses 616,000 Net operating loss (66,680) Common costs allocated on the basis of machine-hours. f common costs allocated on the basis of sales dollars. The currency in Greece is the euro, denoted by . The discontinuance of the bilge pump product line would not affect sales of other product lines and would have no noticeable effect on the company's total general factory overhead or total purchasing department expenses. Required: Compute the net advantage or disadvantage of the bilge pump product line be discontinued? (Negative amount should be indicated by a minus sign.) Net advantage (disadvantage) of dropping the line Should the bilge pump product line be discontinued? O Yes O No