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Thalassines kataskeves, SA, of Greece makes marine equipment. The company has been experiencing losses on its bige 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 bige 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 Sales $ 490,000 Variable expenses Variable manufacturing expenses $ 129,000 Sales commissions 43,000 Shipping 10,800 Total variable expenses 182,000 Contribution margin 388,000 Fixed expenses: Advertising (for the bilge pump product line) 28,000 Depreciation of equipment (no resale value) 103,000 General factory overhead 34,000 Salary of product-line manager 128,000 Insurance on inventories 10,000 Purchasing department 57,000 Total fixed expenses 368,000 Net operating loss 5 (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 (disadvantage) of discontinuing the bilge pump product line

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