Thalassines Kataskeves, S.A., of Greecoe 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 ine follows: Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: 440,000 Variable manufacturing expenses Sales commissions Shipping 131,000 49,000 17,000 Total variable expenses 197,000 Contribution margin Fixed expenses: 243,000 Advertising Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 28,000 114,000 33,000 121,000 6,000 56,000f Total fixed expenses 358,000 Net operating loss (115,000) 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