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: $ 450,000 $ 121,000 45,000 16,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss 182,000 268,000 29,000 119,000 30,000 116,000 6,000 58,000f 358,000 $ (90,000) *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. Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Keep Product Line Drop Product Line Difference: Net Operating Income Increase or (Decrease) Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses b. Would you recommend that the bilge pump product line be discontinued