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Thalassines Kataskeves, S . A . , of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for
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 contribution format income statement for the bilge pump product line follows: Thalassines Kataskeves, SA Income StatementBilge Pump For the Quarter Ended March Sales $ Variable expenses: Variable manufacturing expenses $ Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising for the bilge pump product line Depreciation of equipment no resale value General factory overhead Salary of productline manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss $ Common costs allocated on the basis of machinehours. Common 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 companys total general factory overhead or total Purchasing Department expences.
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 contribution format income statement for the bilge pump product line follows:
Thalassines Kataskeves, SA
Income StatementBilge Pump
For the Quarter Ended March
Sales $
Variable expenses:
Variable manufacturing expenses $
Sales commissions
Shipping
Total variable expenses
Contribution margin
Fixed expenses:
Advertising for the bilge pump product line
Depreciation of equipment no resale value
General factory overhead
Salary of productline manager
Insurance on inventories
Purchasing department
Total fixed expenses
Net operating loss $
Common costs allocated on the basis of machinehours.
Common 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 companys total general factory overhead or total Purchasing Department expences.
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