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 Sales Variable expenses: For the Quarter Ended March 31 $ 420,000 Variable manufacturing expenses Sales commissions $ 135,000 43,000 Shipping 19,000 Total variable expenses 197,000 Contribution margin Fixed expenses: 223,000 Advertising (for the bilge pump product line) 27,000 104,000 43,000 116,000 13,000 42,000 345,000 $ (122,000) Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss "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 (disadvantage) of discontinuing the bilge pump product line? Answer is complete but not entirely correct. Financial (disadvantage) 80,000 *