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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
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 follows: Thalassines Kataskeves, S.A. Income statement-Bilge purp Sales for the quarter Ended March 31 Variable expenses: \$ 490,000 varlable manufacturing expenses Sales commissions Shipping. total variable expenses contribution margin Fixed expenses: Advertising (for the bilge puep product line) bepreciation of equignent (no resale value) Gereral factory overhead Salacy of product-1 ine nanagen insurance on inventories purchasing department lotal fixed expenses liet poprating loss "Common costs allocoted on the basis of machine-hours tCommon costs allocated on the basis of sales dollars foctory overthead or total Pufchasing Department expenses. Required: insurance on inventories Purchasing department Total fixed expenses Net operating loss - Common costs allocated on the basis of machine-hours tCommon costs allocated on the basis of sales dollars. Discontinuing the bilge pump would not affect soles of other product lines and would have no effect on the company's total general factory overheod of total Purchasing Deportment expenses Required: What is the financial advantage (disadvantoge) of discontinuing the bilge pump
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