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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

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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 Katashaves, B.A. Income Statement-hilge Pump Per the Darter Ended March 31 Pales Variable expenses 440,000 Variable manufacturing expenses Sales commissions $130,000 42,000 Shipping 15,000 Total variable expenses 187,000 Contribution margin 253,000 Advertising (for the bilge pump product line) 25,000 114,000 32,000* 116,000 Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating Joes "Common costs allocated on the basis of machine-hours. +Common costs allocated on the basis of sales dollars. 7,000 53,000 347,000 5 (94,000) 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? Financial (disadvantage) $

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