Les Objets Volants (LOJ), S.A., of France, makes aircraft equipment. The company has been experiencing...

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Accounting

Les Objets Volants (LOJ), S.A., of France, makes aircraft equipment. The company has been experiencing losses on its fuel pump product line for several years. The most recent quarterly income statement for the fuel pump product line follows:
LES OBJETS VOLANTS S.A.
Income StatementFuel Pump
For the Quarter Ended March 31
Sales 1,000,000
Less: Variable expenses:
Variable manufacturing expenses 320,000
Sales commissions 66,000
Shipping 14,000
Total variable expenses 400,000
Contribution margin 600,000
Less: Fixed expenses:
Advertising 290,000
Depreciation of equipment (no resale value)90,000
General factory overhead 149,000*
Salary of product-line manager 38,000
Insurance on inventories 18,000
Purchasing department expenses 65,000
Total fixed expenses 650,000
Net operating loss (50,000)
*Common costs allocated on the basis of machine-hours.
Common costs allocated on the basis of sales dollars.
The currency in France is the euro, denoted by . Discontinuing the fuel pump product line would not affect sales of other product lines and would have no noticeable effect on the companys total general factory overhead or total purchasing department expenses.
Required:
Compute the net advantage or disadvantage if the fuel pump product line be discontinued? (Negative amount should be indicated by a minus sign.)

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