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8 Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been...

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Accounting

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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 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 31 460,000 Sales Variable expenses: Variable manufacturing expenses Sales commissions 134,000 50,000 19,000 Shipping Total variable expenses Contribution margin Fixed expenses: 203,000 257,000 Advertising (for the bilge pump product line) 21,000 113,000 42,000 113,000 9,000 57,0001 Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses 355,000 $ (98,000) 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 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

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