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Thalassines kataskeves, SA of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most

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Thalassines kataskeves, SA 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 ataskeves, S.A. Income Statement-te Pump For the Quarter Ended March 1 Sales Variable expenses 470,000 Variable manufacturing expenses $ 125,000 Sales commissions 42.000 Shipping 10,000 Total variable expenses 177.000 Contribution margin 293,00 Fixed expenses Advertising (for the bilge pump product line) 20,000 Depreciation of equipment (no resale value) 103,000 General factory overhead 42,000 Salary of product line manager 121,000 Insurance on Inventories 12.000 Purchasing department 47,000+ Total fled expenses Wet operating loss $ 52,000) "Common costs allocated on the basis of machine hours 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 (disadvantages of discontinuing the biloe pump product line? Answer is complete but not entirely correct. Financial (disadvantage) S (112.000)

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