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 $430,000 Sales Variable expenses Variable manufacturing expense Sales commissions Shipping $138,000 51,000 19,000 Total variable expenses 208,000 Contribution margin Fixed expenses 222,000 Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 22,000 114,000 36,000* 126,000 12,000 58,000t Total fixed expenses 368,000 Net operating loss $(146,000) Common costs allocated on the basis of machine-hours tCommon 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 on discontinued. (Decreases should be indicated by a minus sign.) Thalassines Kataskeves. S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Difference: Net Operating Income Keep Drop Product Line Product LineIncrease or Decrease) Variable expenses: Total variable expenses 0 0 0 Fixed expenses: Total fixed expenses 0 0 0 0 0 b. Would you recommend that the bilge pump product line be discontinued? O No Yes