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: Thalassinen Kataokevos, B.A. Income statement-ge Pump For the Quarter Ended March 31 Sales $410,000 Variable expenses Variable manufacturing expenses $ 127,000 Sales Comissions 52.000 Shipping 20,000 Total variable expenses 199,000 Contribution margin 211.000 Pixed expenses Advertising for the bilge pump product line) 28.000 Depreciation of equipment (no renale value) 113,000 deneral factory overhead 40,000 Blaty of product line manager 213,000 Insurance on inventories 10,000 Purchasing department 50.0001 Total fixed expenses 354,000 Het operating loss 30143,000) "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 totat Purchasing Department expenses Required: What is the tinancial advantage (disadvantage of discontinuing the bige pump product line? Bed & Bath, a retalling company has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Het operating income (los) Department Total Hardware nons $4,160,000 $3,000,000 $1,000,000 1,294,000 886,000 408,000 2,866,000 2,194,000 672,000 2,150,000 1,330,000 820,000 $ 716,000 864,000 $140,000) A study indicates that $377,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 19% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department