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

Variable expenses:

Contribution margin

Fixed expenses:

Advertising $(for$ the bilge pump product line$)23,000$

Depreciation $of$ equipment $(no$ resale value$)110,000$

General factory overhead $45,{000}^{**}$

Salary of product$-$line manager

Insurance on inventories

Purchasing department

Total fixed expenses

Net operating loss

$$430,000$

$*$Common $($indirect$)$ costs allocated on the basis of machine$-$hours.

$$Common $($indirect$)$ 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.