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Thalassines kataskeves, SA of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most

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Thalassines kataskeves, SA 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: Thalasines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 400,000 Variable expenses Variable manufacturing expenses 5 124, 00D Sales commissions 51,000 Shipping 22.000 Total variable expenses 197,000 Contribution margin 203.000 Fixed expenses Advertising (for the bilge pump product line) 25,000 Depreciation of equipment (no reale value) 101.000 General factory overhead 38,000 Salary of product-line manager Insurance on inventories 14,000 Purchasing department Total fixed expenses 332, 000 Net operating loss $ 129,000 *Common costs allocated on the bosis 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: What is the financial advantage (disadvantage of discontinuing the bilge pump product line? Financial (disadvantage 110,000 44.000

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