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 31 400,000 Sales Variable expenses: $120,000 Variable manufacturing expenses Sales commissions 42,000 Shipping 17,000 179,000 Total variable expenses Contribution margin 221,000 Fixed expenses: 28,000 Advertising Depreciation of equipment (no resale value 113,000 General factory overhead 32,000 Salary of product-line manager 113,000 13,000 Insurance on inventories 52,000t Purchasing department Total fixed expenses 351,000 Net operating loss $(130,000) Common costs allocated on the basis of machine-hours 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