Required
a.	Compute the increase or decrease of net operating income if the product line is continued or discontinued. (Decreases should be indicated by a minus sign.)

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 $490,000 Sales Variable expenses $139,000 Variable manufacturing expenses Sales commissions 54,000 Shipping 15.000 208,000 Total variable expenses Contribution margin 282,000 Fixed expenses Advertising 22,000 106,000 Depreciation of equipment (no resale value) General factory overhead 48,000* 121,000 Salary of product-line manager 8,000 Insurance on inventories Purchasing department 54,000t 359,000 Total fixed expenses (77,000) 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