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Exercise 11-15 Dropping or Retaining a Segment (L011-2] Thalassines Kotaskeves, SA 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, SIA Incone Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 460,000 Variable expenses Variable manufacturing expenses $ 124,000 Sales comissions 43,000 Shipping 18,000 Total variable expenses 185,000 Contribution margin 275.000 Fixed expenses Advertising (for the bilge pump product line) 22,000 Depreciation of equipment (no resale value) 133,000 General factory overhead 38,000 Salary of product line manager 112,000 Insurance on inventories 10,000 Purchasing department 46,0001 Total fixed expenses 341.000 Net operating loss 5 (66,000) *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 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 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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