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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

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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. Incon Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 480,000 Variable expenses: Variable nanufacturing expenses $ 123,000 Sales comissions 52.ee Shipping 10.000 Total variable expenses 185, cee Contribution margin 295,000 Fixed expenses Advertising (for the bilge pump product line) 20,000 Depreciation of equipment (no resale value) 118.000 General factory overhead 31,000 Salary of product-line many 124,000 Insurance on inventories 10,009 Purchasing department Total fixed expenses 349,000 Het operating loss $(54,000 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 biloe pump product line? 46,000

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