5 Exercise 13-15 (Algo) Dropping or Retaining a Segment (LO13-2) 171 points eBook References 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, B.A. Incone Statement-olge Pump For the Quarter anded Maren 31 Sales $440,000 Variable expenses Variable manufacturing expenses $ 139,000 Sales commissions 55,000 Shipping 19.000 Total variable expennen 213000 Contribution margin 227.000 Fixed expenses Advertising for the bilge pump product line) 29,000 Depreciation of equipment (no reale value) 109,000 General factory overhead 38,000 Salary of product line manager 116,000 Insurance on inventories 10,000 Purchasing department 57.000 Total Fixed expenses 359,000 set operating loss $(132,000) "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? Financial (disadvantage)