MANAGERIAL ACCOUNTING HELP!

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:

Thalassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 Sales 850,000 Variable expenses: 330,000 Variable manufacturing expenses Sales commissions shipping Tot Contribution mapenses Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) 18,000 able 390,000 460,000 rgin 270,000 80,000 105,000 32.000 General factory overhead anager Insurance on inventories 8,000 Purchasing department 45,000t Total fixed expenses 540,000 $(80,000) Net operating loss *Common costs allocated on the basis of machine-hours. tCommon 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 financial advantage (disadvantage) of discontinuing the bilge pump product line