Exercise 9-3 Deciding Whether to Drop or Retain a Segment (L01 - CC3) Thalassines kataskeves, SA 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 comissions 46,000 Shipping 14,000 Total variable expenses 400,000 Contribution margin $50,000 Less: Fixed expenses Advertising Depreciation of equipment (no resale value) 290,000 90,000 General factory overhead 115,000 Salary of product-line manager Insurance on inventories 38,000 18,000 Purchasing department expenses Total fixed expenses 65,000+ 616,000 Net operating loss (66,000) Save & Exit Submit Help Common costs allocated on the basis of machine-hours Common costs allocated on the basis of sales dollars The currency in Greece is the euro, denoted by . The discontinuance of the bilige 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 if the bilge pump product line be discontinued? (Negative amount should be indicated by a minus sign.) Not advantage (disadvantage) of dropping the line Should the bilge pump product line be discontinued? Yes O NO