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 $430, 08e Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping $ 136, e00 49,000 23, 000 Total variable expenses Contribution margin Fixed expenses 208, 000 222, 000 Advertising (for the bilge pump product line) Deprecjation of equipment (no resale value) General factory overhead Salary of product-line manager 27, 000 107, 006 34, 000 113, 006 12, 000 se, 0e0t Insurance on inventories Purchasing department Total fixed expenses Net operating loss 343, 00 s (121, 000) Common costs allocated on the basis of machine-hours t 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 expenses