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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 $ 470,000 Variable expenses: Variable manufacturing expenses $ 136,000 Sales commissions 53,000 Shipping 24,000 Total variable expenses 213.000 Contribution margin 257,000 Fixed expenses Advertising (for the bilge pump product line) 20,000 Depreciation of equipment (no resale value) 108,000 General factory overhead Salary of product-line manager 123,000 Insurance on inventories 13,000 Purchasing department 52,000 Total fixed expenses 352,000 Net operating loss $(95,000) Common (indirect) costs allocated on the basis of machine hours. Common (indirect) 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. 36,000" 257,000 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 20,000 108,000 36,000 123,000 13,000 52,000+ 352,000 $ (95,000) *Common (indirect) costs allocated on the basis of machine-hours. tCommon (indirect) 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 total financial Impact of discontinuing the bilge pump product line? (Indicate a negative impact with a negative sign.) (Hint: See Example 11-2a in the course packet for guidance.)

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