W 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 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 (for the bilge pump product line) Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Search $ 500,000 $ 139,000 42,000 21,000 202,000 298,000 27,000 107,000 41,000 121,000 14,000 43,000 355,000 Prey 1 of 5 Next ck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss "Common costs allocated on the basis of machine-hours. 41,000 121,000 14,000 43,000 353,000 $ (55,000) Return to question +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? Answer is complete but not entirely correct. Financial (disadvantage) $ (55,000) ( O Search Prey 1 of 5 Next >