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 follow 5 $ 430,000 1.25 points $ 140,000 53, eee 16,000 Skipped Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line) 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 209,000 221,000 22,000 107,000 eBook 32,600* 126,000 6, eee 48,eeet Print 341,000 $ (120,000) References 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. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? Financial advantage Financial (disadvantage) Exercise 13-13 (Algo) Sell or Process Further Decision (LO13-7] 4 Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $56,000 per ton, one-fourth of which is allocated to product X15. Eight thousand six hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $15 each, or processed further at a total cost of $6,900 and then sold for $21 each. 1.25 points Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? eBook Print 1. Financial (disadvantage) 2. Product X15 should be References Processed further Sold at the split-off point