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 31 400,000 Sales Variable expenses: $138,000 Variable manufacturing expenses Sales commissions 44,000 20,000 Shipping 202,000 Total variable expenses 198,000 Contribution margin Fixed expenses: 22,000 Advertising Depreciation of equipment (no resale value) 116,000 General factory overhead 46,000 Salary of product-line manager 129,000 Insurance on inventories 8,000 58,000t Purchasing department 379,000 Total fixed expenses Net operating loss $(181,000) Common costs allocated on the basis of machine-hours 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