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 StatementBilge Pump For the Quarter Ended March 31
Sales		460,000
Variable expenses:
Variable manufacturing expenses	122,000
Sales commissions	53,000
Shipping	17,000
Total variable expenses		192,000
Contribution margin		268,000
Fixed expenses:
Advertising	123,000
Depreciation of equipment (no resale value)	49,000
General factory overhead	103,000*
Salary of product-line manager	29,000
Insurance on inventories	13,000
Purchasing department	50,000
Total fixed expenses		367,000
Net operating loss		(99000)

*Common costs allocated on the basis of machine-hours.

Common costs allocated on the basis of sales dollars.

The currency in Greece is the euro, denoted above by . 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:
(a)	Compute the increase or decrease of net operating income if the bilge pump product line are continued or discontinued. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by a minus sign. Omit the "" sign in your response.)

	Keep Product Line	Drop Product Line	Difference: Net Operating Income Increase or (Decrease)
Sales
Variable expenses:
Variable manufacturing expenses
Sales commissions
Shipping
Total variable expenses
Contribution margin
Fixed expenses:
Advertising
Depreciation of equipment
General factory overhead
Salary of product line manager
Insurance on inventories
Purchasing department
Total fixed expenses
Net operating Income (loss)