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 $ 420,000 Variable expenses: Variable manufacturing expenses $136,000 Sales commissions 54,000 Shipping 13,000 Total variable expenses 203,000 Contribution margin 217,000 Fixed expenses: Advertising 23,000 Depreciation of equipment (no resale value) 112,000 General factory overhead 39,000* Salary of product-line manager 125,000 Insurance on inventories 7,000 Purchasing department 47,000+ Total fixed expenses 353,000 Net operating loss $(136,000) *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 a. Compute the increase or decrease of net operating income if the product line is continued or discontinued. (Decreases should be indicated by a minus sign.) Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Keep Drop Product Line Product Line Difference: Net Operating Income Increase or (Decrease) Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses 0 0 0 0 0 Fixed expenses: Total fixed expenses 0 0 0 0 0 0