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 StatementBilge Pump For the Quarter Ended March 31
Sales		$ 430,000
Variable expenses:
Variable manufacturing expenses	$ 126,000
Sales commissions	54,000
Shipping	13,000
Total variable expenses		193,000
Contribution margin		237,000
Fixed expenses:
Advertising (for the bilge pump product line)	25,000
Depreciation of equipment (no resale value)	100,000
General factory overhead	37,000*
Salary of product-line manager	121,000
Insurance on inventories	10,000
Purchasing department	46,000
Total fixed expenses		339,000
Net operating loss		$ (102,000)

*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 companys 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.)