Sales $ $460,000$

Variable expenses:

Variable manufacturing expenses $ $122,000$

Sales commissions $48,000$

Shipping $17,000$

Total variable expenses $187,000$

Contribution margin $273,000$

Fixed expenses:

Advertising $($for the bilge pump product line$)25,000$

Depreciation of equipment $($no resale value$)118,000$

General factory overhead $43,000*$

Salary of product$-$line manager $121,000$

Insurance on inventories $14,000$

Purchasing department $43,000$

Total fixed expenses $364,000$

Net operating loss $ $(91,000)$