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 (a total of 1,000 sold units at the selling price of $850 each): Thalassines Kataskeves, S. A Income Statement- Bilge Pump For the Quarter Ended March 31 Sales (1,000 units).. $850,000 Variable expenses: Variable manufacturing expenses.. $330,000 Sales commissions.. 42,000 Shipping...... 18,000 Total variable expenses. $390,000 Contribution margin.. $460,000 Fixed expenses: Advertising (for the bilge pump product line).. $270,000 80,000 105,000 32,000 8,000 45,000 $540,000 $(80,000) 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.... The general factory overhead is the common cost allocated on the basis of machine-hours; the purchasing department cost is also the common cost allocated to the bilge pump product line on the basis of sales dollars. If the company closes the bilge pump product line, there is no impact on the company's total general factory overhead or the total purchasing department expenses. Discontinuing the bilge pump product line would not affect sales of other product lines. Required: (a) Should the company keep or drop the bilge pump product line? Show your computation. (7 points) (b) At what level of units sold (i.e., how many units should be sold) would the company be indifferent between closing the product line and keeping this product line? (Hint: this is a type of break-even analysis) (3 points)