Exercise 11-15 (Algo) Dropping or Retaining a Segment (LO11-2] 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: $ 460,000 198,000 262,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: $ Variable manufacturing expenses 123,000 Sales commissions 53,000 Shipping 22,000 Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product 30,000 line) Depreciation of equipment (no resale 110,000 value) General factory overhead Salary of product-line manager 120,000 Insurance on inventories 5,000 Purchasing department Total fixed expenses Net operating loss 38,000* 51,000+ 354,000 (92,000) *Common costs allocated on the basis of machine-hours. Common 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: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line