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 $ 410,000 Variable expenses: Variable manufacturing expenses $126,000 Sales commissions 42.000 Shipping 24,000 Total variable expenses 192,000 218,000 Contribution margin Fixed expenses Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 22,000 119,000 41,000" 129,000 10,000 43,000+ Total fixed expenses 364,000 Net operating loss $(146,000) "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. Required 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. Income Statement-Bilge Pump For the Quarter Ended March 31 Difference: Keep Net Operating Drop Product Line Product Line Income Increase or (Decrease) Variable expenses Total variable expenses Fixed expenses Total fixed expenses Would you recommend that the bilge pump product line be discontinued? No Yes