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Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Sales commissions 850,000 Variable manufacturing expenses Shipping $ 330,000

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Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Sales commissions 850,000 Variable manufacturing expenses Shipping $ 330,000 42,000 18,000 Total variable expenses Contribution margin 390,000 460,000 Fixed expenses: Advertising (for the bilge pump product line) 270,000 Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses 80,000 105,000* 32,000 8,000 Net operating loss S *Common costs allocated on the basis of machine-hours. 45,000* 540,000 $ (80,000) 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 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? Financial (disadvantage)

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