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 StatementBilge Pump

For the Quarter Ended March 31

Sales $ 440,000

Variable expenses:

Variable manufacturing expenses $ 124,000

Sales commissions 49,000

Shipping 19,000

Total variable expenses 192,000

Contribution margin 248,000

Fixed expenses:

Advertising (for the bilge pump product line) 25,000

Depreciation of equipment (no resale value) 114,000

General factory overhead 30,000 *

Salary of product-line manager 125,000

Insurance on inventories 12,000

Purchasing department 49,000

Total fixed expenses 355,000

Net operating loss $ (107,000 )

*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?