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., 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 31 420,000 Sales Variable expenses: $139,000 Variable manufacturing expenses 48,000 Sales commissions Shipping 17,000 Total variable expenses 204,000 216,000 Contribution margin Fixed expenses: 22,000 Advertising Depreciation of equipment (no resale value) 108,000 39,000* General factory overhead Salary of product-line manager 119,000 9,000 Insurance on inventories Purchasing department 43,000t 340,000 Total fixed expenses $(124,000) 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