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 halassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: $ 410,000 Variable manufacturing expenses Sales commissions Shipping $131,000 43,000 18,000 Total variable expenses 192,000 Contribution margin Fixed expenses: 218,000 26,000 116,000 37,000* 15,000 14,000 51,000t Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-ine manager Insurance on inventories Purchasing department Total fixed expenses 359,000 $(141,000) Net operating loss 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 a. 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 Requirea a. 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: Drop Net Keep Product Line Product Line Income Increase or Decrease) Variable expenses: Total variable expenses 0 0 Fixed expenses: Total fixed expenses 0 Would you recommend that the bilge pump product line be discontinued? b. No Yes