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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. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 410,000 Variable expenses: Variable manufacturing expenses $ 121,000 Sales commissions 53,000 Shipping 20,000 Total variable expenses 194,000 Contribution margin 216,000 Fixed expenses Advertising (for the bilge pump product line) 27,000 Depreciation of equipment (no resale value) 105,000 General factory overhead 43,000 Salary of product-line manager 120,000 Insurance on inventories 13,000 Purchasing department 43,000+ Total fixed expenses 351,000 Net operating 100 $ (235,000) 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? Financial (disadvantage)

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