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Thalassines Kataskeves, S.A, of Greece makes marine equipment. The company has been years. The most recent quarterly contribution format income statement for the bilge pump
Thalassines Kataskeves, S.A, of Greece makes marine equipment. The company has been years. The most recent quarterly contribution format income statement for the bilge pump product line follows Income Statement-Bilge Pump For the Q d March 31 Sales Variable expenses S 490,000 Variable manufacturing expenses Sales c 120,000 47,000 19,000 Shipping Total variable expenses Contribution margin Fixed expenses. 86 000 304,000 Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 29,000 103,000 39,000 116,000 9,000 44 000t Total fixed expenses Net operating loss 340,000 S (36,000) "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 G Google 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 or discontinued (Decreases should be indicated by a minus sign.) S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Keep Product Line Drop Product Line Income Increase or For the Quarter Ended March 31 Keep Product Line Drop Product Line Income Inc Fixed expenses Total fixed expenses
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