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 Sales Variable expenses $470,000 Variable manufacturing expenses Sales commissions Shipping $122,000 47,000 23,000 Total variable expenses 192,000 278,000 Contribution margin Fixed expenses Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 25,000 109,000 43,000* 112,000 5,000 44,000t Total fixed expenses 338,000 Net operating loss $(60,000) *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